KUALA LUMPUR: Capital A Bhd has received shareholders' approval on proposed disposal of the company's aviation business to AirAsia X (AAX) at its extraordinary general meeting (EGM).
Its chief executive officer Tony Fernandes said the company is unlocking a bright new future by delineating its pure-play aviation business from aviation support services.
"This clarity will benefit both shareholders and customers, allowing us to redefine the future of travel in the region," he said in a statement.
Meanwhile, Fernandes said Capital A's broader strategy is aimed at developing technology-driven aviation services and digital businesses that will support the significant anticipated growth in travel demand.
He believes separating the aviation and non-aviation businesses allows the company to sharpen its focus on maturing the high-growth aviation support services and digital businesses.
"Upon securing AAX shareholders approval at the EGM on October 16, the aviation businesses will be able to consolidate to form a game-changing AirAsia Group, with synergies between short-haul and long-haul operations driving greater efficiency, profitability, and shareholder returns."
"Today's approval from our shareholders also paves the way for Capital A to move to a clean balance sheet that will provide the clarity and flexibility to finalise our regularisation plan and exit PN17 status soon," he said.
Following today's milestone approval, Capital A will seek a court order to distribute the consideration shares to shareholders through a planned reduction and repayment of the company's issued share capital.
It will also be securing approval from the holders of Redeemable Convertible Unsecured Islamic Debt Securities (RCUIDS) at their meeting on October 14, marking another critical milestone in Capital A's journey.
These critical steps will enable Capital A to achieve a clean balance sheet and focus on submitting its regularisation plan before the year end, with the aim of exiting Practice Note 17 (PN17) status.