Capital A Berhad shareholders will receive 1.69bn in new shares in AirAsia X (AAX) as part of its restructuring plan, with the company divesting its aviation business to AirAsiaX Berhad — creating a unified single airline entity.
“This move is part of the final procedures for the disposal of its airline businesses to AAX, consolidating all AirAsia brand airlines under a single entity and paving the way for Capital A's transformation into a multi-platform travel and digital group,” Capital A said in a statement.
The new aviation group will be named AirAsia Group and will focus on expanding its low-cost network across the region. Capital A will concentrate on scaling its five key “high-growth businesses”, which include ADE, Teleport, AirAsia MOVE, Santan, and AirAsia Next.
The distribution of the new shares will be made as a dividend in kind, through a reduction and repayment of the company's issued share capital.
“This corporate exercise signifies a significant milestone in Capital A’s comprehensive regularisation plan, which also includes a proposed capital reduction to set off accumulated losses,” Capital A said.
The distribution ratio will be around 389 AirAsia X shares for every 1,000 Capital A shares, with the entitlement date being December 3, 2025.
The overall restructuring is expected to be completed by December and will apply to be uplifted from PN17 status — a status designated to publicly-listed companies that are facing significant financial distress.