Capital A – owner of the Airasia Aviation Group – has secured approval from the Malaysian Stock Exchange for a “normalization plan” to withdraw its financially bound position.
With approval announced on March 7, the Malaysia-based company can “complete implementation” of the plan. This includes a reorganization that includes capital cuts and sales to sister operator AirAsiaX.
This plan must obtain shareholder and court approval before Capital A can terminate the status of a financially bound company from “Practice Note 17”, i.e. PN17.
Local media coverage suggests that if the company has secured the required approvals, it could possibly come out soon in May.
Capital A Chief Tony Fernandez said: “Our journey is focused on rebuilding our financial foundations, and with today's announcement we are taking a major leap towards a future of financial strength and operational excellence.”
The announcement comes amid rumors that Saudi Arabia's sovereign fund could invest $100 million in AirAsia Group after its sale. According to a report from Bloomberg, Capital A is also discussing investors in Singapore and Japan, and could be announced in the coming weeks.
Capital A has not addressed the issue publicly.
