Malaysia-based Capital A Berhad announced Thursday that its shareholders has approved capital reduction for PN17 exit plan.

The firm said in a statement that the shareholders and RCUIDS holders have unanimously approved a key resolution at the company’s extraordinary general meeting (EGM), namely the rroposed regularization plan comprising the capital reduction of up to RM6 billion.

This represents achievement of critical milestones in Capital A’s proposed regularization plan, designed to facilitate the Company’s exit from Practice Note 17 (PN17) status and reinforce its long-term financial resilience.

The capital reduction will allow the Company to clean up its balance sheet by offsetting the accumulated losses of the Company, presenting a clearer and healthier financial position.

“This is a pivotal day for Capital A. With shareholder and RCUIDS holders support for capital reduction, we are taking bold steps to complete our turnaround and move beyond PN17,

“We’ve been through tough times, but we’ve built powerful businesses that are now positioned for growth, and these exercises are critical to unlocking that next chapter,” said Tony Fernandes, Chief Executive Officer of Capital A.

These initiatives are part of a wider transformation strategy, which includes the disposal of Capital A’s aviation business to AirAsia X Berhad (AAX) and a strategic focus on six high-growth, non-aviation businesses: Asia Digital Engineering (ADE) (aircraft maintenance and engineering); Teleport (logistics and cross-border delivery); AirAsia MOVE (digital travel and booking platform); BigPay (digital finance and fintech); Santan (inflight catering and F&B brand); Abc. International (brand management and licensing).

With the EGM approvals secured, Capital A will now proceed to seek High Court confirmation of the capital reduction upon the announcement of entitlement date of the proposed disposal.

These actions pave the way for Capital A to complete its regularization plan and are expected to significantly strengthen the group’s capital base, enhance investor confidence, and support long-term growth– putting the Company on track to exit PN17 status by mid-2025.

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