Capital A Bhd is moving into the final phase of its restructuring with the proposed distribution of 1.69 billion new shares in AirAsia X Bhd (KL:AAX) to its shareholders via a dividend-in-specie. The group said the exercise represents a major step in completing the disposal of its airline operations to AAX, which will unify all AirAsia-branded carriers under a single listed entity.
In a statement on Thursday, Capital A said the distribution forms part of its broader strategy to transform the company into a travel and digital services group, allowing it to focus on non-airline businesses once the restructuring is completed.
Under the entitlement terms, shareholders whose names appear in the record of depositors as at 5pm on Dec 3 will receive approximately 389 AAX shares for every 1,000 Capital A shares held. The ex-date has been set for Dec 2, and any fractional entitlements will not be distributed.
Capital A described the move as a “significant milestone” within its comprehensive regularisation plan, which also includes a proposed capital reduction to offset accumulated losses. The entire restructuring is targeted for completion by December, after which the group intends to seek an uplift from its Practice Note 17 (PN17) classification.
Chief financial officer Mun Hui Teh said finalising the entitlement date signals that Capital A is approaching the last stage of the airline business disposal. Once completed, AirAsia X will serve as the consolidated airline vehicle for all AirAsia carriers.
He added that the realignment is designed to enhance shareholder value and set the stage for Capital A’s next chapter as a high-growth, multi-platform travel and digital solutions group, separate from the operational responsibilities of running an airline.
Following the consolidation, AirAsia X will operate the combined airline portfolio, while Capital A will concentrate on accelerating the expansion of its non-airline verticals. These include its engineering subsidiary Asia Digital Engineering (ADE), logistics provider Teleport, travel platform AirAsia MOVE, the Santan F&B brand, and its brand licensing and intellectual property unit, AirAsia Next.
Capital A emphasised that the restructuring will allow the group to build a more streamlined, asset-light business model positioned for long-term growth across multiple travel and digital segments.
