KUALA LUMPUR: Capital A Bhd's today said an extraordinary general meeting to bring its proposal to sell its aviation business to AirAsia X for shareholders vote will happen within three weeks.
In a statement on its website, the company said this was made possible after Bursa Malaysia cleared its EGM circular detailing the proposed disposal.
"This transaction is a key part of our long-term strategy to unlock unparalleled value for our shareholders and position Capital A for sustainable growth across all its business verticals. "By separating our aviation and non-aviation businesses, we can better focus on building synergies within each entity, driving growth, and maximising shareholder returns,"Capital A chief executive officer Tony Fernandes said in the statement.
Should shareholders approve the deal the upcoming EGM, the aviation disposal proposal will proceed to court for approval of the proposed distribution to shareholders via capital reduction.
The completion of this transaction will lead to the formation of the new AirAsia Group, which combines both short-haul and long-haul operations under one umbrella.
Capital A fell into PN17 status in January 2022.
On Thursday, Bursa Malaysia Securities approved the listing and quotation of new shares and warrants in AAX related to its planned acquisition of Capital A.
AAX plans to issue 2.31 billion shares at RM1.30 each, totalling RM3 billion, to acquire AirAsia Aviation Group Ltd.