Capital A Berhad — owner of AirAsia — will propose a 6bn Malaysian ringgit ($1.4bn) capital reduction to its shareholders. The proposed regularisation plan will be voted on at the upcoming extraordinary general meeting (EGM) held on May 7, 2025.
The company said in a statement that the capital reduction will allow it to offset its accumulated losses and “rationalise the balance sheet”. Capital A reported a net loss of 475 million ringgits ($109.8 million) and has made consecutive annual net losses in the previous years through 2019, last recording a net profit in 2018.
Once approved by shareholders, the company will seek approval from the high court. Completion of the plan is targeted for June 2025.
“I'm confident this regularisation plan puts us on a stronger path to long-term value creation,” said Capital A CEO Tony Fernandes in a statement. “We look forward to securing shareholder support.”
Upon completion, the company expects its shareholders' equity to be approximately 742.1 million ringgits ($171.5 million).
Shareholders have already approved the disposal of Capital A's aviation business to AirAsia X Berhad (AAX). The company said this will enable it to “focus entirely on its non-aviation portfolio of high-growth businesses”.
Following the aviation divestment, Capital A will focus on six entities, including its MRO service provider Asia Digital Engineering; air logistics operator Teleport; AI-powered online travel agent AirAsia MOVE; fintech company BigPay; digital culinary company Santan; and its brand management arm Abc International.
Fernandes noted that the company's unaudited profit after tax for its remaining businesses — excluding the aviation segment — for 2024 totalled 162.1 million ringgits ($37.5 million).