Latest news with #PN17
Free Malaysia Today
2 hours ago
- Business
- Free Malaysia Today
Capital A in final stages of PN17 exit plan, says Fernandes
Capital A fell into Bursa Malaysia's PN17 category of financially distressed entities in January 2022. (EPA Images pic) KUALA LUMPUR : Capital A Bhd is in the final stages of its regularisation plan to exit the Practice Note 17 (PN17) status, with only 15% to 20% of the process remaining, says its chief executive officer Tony Fernandes. He said the process is expected to be completed by the end of July. 'Building an airline was very tough, getting out of PN17 is tougher. We are on the last 15% to 20%, I can see the finish line. 'I think it is an exciting time for Capital A. We just have to cross that PN17 barrier, which I think we are almost there. It is out of my control, but I think our latest target is the end of July,' he told Bernama. Capital A fell into Bursa Malaysia's PN17 category of financially distressed entities in January 2022. Fernandes said the group is working through a few final tasks before concluding its PN17 exit plan – among them is to finalise the proposed disposal of its entire 100% stake in AirAsia Aviation Group Ltd (AAAGL) and AirAsia Bhd (AAB) to AirAsia X Bhd (AAX). AAAGL operates passenger airline services through subsidiaries in Thailand, Indonesia, the Philippines and Cambodia. 'Our plan requires three more things to be completed. Firstly, the Thai Stock Exchange (SET) has to agree (on the proposed disposal) – we have a backup plan if we cannot get it to agree, but I am confident we can. 'Secondly, we need five consent letters from our creditors and we already have four, and the third is the RM1 billion of equity, which we have,' he said. Fernandes said once the proposed disposal of AirAsia's aviation business is completed, the group will seek court confirmation for its capital reduction plan. Meanwhile, commenting on Capital A's plan for potential listing on the Hong Kong Stock Exchange (HKEX), Fernandes said its board of directors had given its approval and is very serious about pursuing the proposal. He also reaffirmed the group's intention to list its brand management arm, ABC International, on the Nasdaq in the United States. 'Once we get out of PN17, two things I can say, one is the Hong Kong listing and two, we will go back to listing the ABC International, which was formerly known as Capital A International in America.'
Reuters
08-05-2025
- Business
- Reuters
Malaysia's Capital A shareholders approve up to $1.4 billion capital reduction
May 8 (Reuters) - Malaysia's Capital A ( opens new tab, which owns airline AirAsia, said on Thursday its shareholders and debtholders approved a capital reduction plan of up to 6 billion ringgit ($1.4 billion), as the company aims to shrug off its 'financially distressed' tag. Capital A was severely impacted by pandemic-era travel curbs and its equity declined to below 50% of subscribed capital, due to which it was designated as a 'PN17' financially distressed entity by Malaysia's stock exchange in 2022. Last month, the company announced the capital reduction plan to bolster its balance sheet and offset losses, which amounted to 475.1 million ringgit last year. Capital A said it will seek the country's high court's confirmation for the capital reduction plan, and that is on track to exit the PN17 status by the middle of this year. Besides the capital reduction, Capital A's proposed regularisation plan includes divesting its aviation business to long-haul affiliate AirAsia X ( opens new tab, which shareholders have already approved. This will help the company pivot toward non-aviation ventures, with a strategic focus on expanding its digital services and logistics operations. ($1 = 4.2650 ringgit)
The Sun
02-05-2025
- Business
- The Sun
Capital A exploring dual listing on Hong Kong Exchange
PETALING JAYA: Capital A Bhd is actively exploring a potential listing on the Hong Kong Exchange (HKEX), as part of its strategy to broaden access to global capital markets and position its digital and aviation services businesses for the next phase of growth. The initiative follows a high-level meeting with HKEX, where Capital A was invited to explore a Hong Kong listing to access deeper global and mainland Chinese investor pools that are increasingly drawn to Asean growth stories with strong China ties. In a statement today, the company said discussions are ongoing, and Capital A is close to appointing an international investment bank to advise on the listing structure and timeline. Plans to initiate the formal process are subject to internal assessments and regulatory approvals. Capital A CEO Tan Sri Tony Fernandes said the company is proudly rooted in Asean but built for the world. He said with over 20 destinations across Greater China and significant business exposure in the region, Capital A see Hong Kong as a natural capital markets gateway. 'A dual listing would allow us to tell our story on a global stage and connect with a broader investor base that values digital-first, asset-light business models. 'Teleport, ADE (Asia Digital Engineering), and digital travel platform AirAsia MOVE have received great recognition, and this is an exciting opportunity that aligns with our ambition to accelerate growth, attract new strategic investors, and maximise long-term shareholder value,' he said. The potential HKEX listing is seen as a natural next step following Capital A's ongoing PN17 regularisation plan, which is targeted for completion by mid-2025. Upon exiting PN17 status, the group intends to pursue strategic initiatives that will further strengthen its capital structure and global presence. Hong Kong's deep capital markets, enhanced listing regime, and strong connectivity with both international and Mainland Chinese investors continue to attract high-growth, internationally exposed businesses. The HKEX remains a preferred venue for Asean companies seeking to scale globally, bolstered by rising Southbound Stock Connect trading and an increasingly diversified investor base. Capital A said it will provide further updates as the evaluation progresses.
The Star
02-05-2025
- Business
- The Star
Malaysia's Capital A eyes HK listing post exiting 'financially distressed' status
MALAYSIA's Capital A said on Friday it is exploring listing on the Hong Kong stock exchange (HKEX) in a bid to diversify its access to global markets. Capital A, owner of budget airline AirAsia, was hard hit by pandemic travel restrictions and classified by Malaysia's stock exchange as 'PN17', or financially distressed, in 2022. The potential HKEX listing is seen as a "natural next step" following the firm's ongoing PN17 regularisation plan, it said in a statement, which is targeted for completion by mid 2025. It expects to return to profitability this year after posting a loss for fiscal year 2024. "Discussions are ongoing and Capital A is close to appointing an international investment bank to advise on the proposed listing structure and timeline," the firm said. Capital A said plans to initiate the formal process are subject to internal assessments and regulatory approvals. Reuters Trading ideas: EWI, Vizione, KNM, WTK, Carimin, Reach Ten, Compugates, HCK, Mah Sing, Maybank, LPI Capital, Tasco
New Straits Times
27-04-2025
- Business
- New Straits Times
Bursa Malaysia publicly reprimands Reach Energy, fines six directors
KUALA LUMPUR: Bursa Malaysia Securities Bhd has publicly reprimanded Reach Energy Bhd and seven of its directors for breaching the Bursa Malaysia Securities Main Market Listing Requirements. In addition, six directors were imposed a fine of RM50,000 each, it said in a statement today. The exchange said Reach Energy was publicly reprimanded for failing to make the first announcement pursuant to Practice Note 17 (PN17) on an immediate basis upon announcement of the company's fourth quarterly report for the financial period ended Dec 21, 2022 on Feb 28, 2023. The company only made the first announcement on April 3, 2023 -- after a delay of approximately one month, it added. "Bursa Malaysia Securities views the breach seriously as the first announcement was crucial to shareholders and investors as it is related to Reach Energy's financial condition and the consequences of being classified as a financially distressed company pursuant to PN17 vis-à-vis possible suspension and delisting if the company fails to regularise its financial condition within the timeframe prescribed. "Hence, timely disclosure of information pertaining to classification/triggering of PN17 is important towards facilitating informed investment decisions," it said. Additionally, the exchange also reminded Reach Energy and its board of their responsibilities to maintain the appropriate standards of corporate responsibility and accountability to its shareholders and the investing public.
