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KUALA LUMPUR (Nov 20): Capital A Bhd will distribute 1.69 billion new shares in AirAsia X Bhd to its shareholders via a dividend-in-specie, marking its final steps in its restructuring. 

This move is part of the disposal of its airline business to AAX, which consolidates all AirAsia brands under one entity, and paves the way for Capital A’s transformation into a travel and digital services group, according to the group’s statement on Thursday.

Shareholders on the record of depositors as at 5pm on Dec 3 will receive about 389 AAX shares for every 1,000 Capital A shares held, without payment, the statement read.

Separately, the ex-date is Dec 2, and fractional entitlements will be disregarded.

“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,” it said in a statement on Thursday.

The overall restructuring is targeted for completion by December, after which Capital A plans to apply for an uplift from its Practice Note 17 (PN17) status, it added.

“The setting of the Entitlement Date is a monumental milestone, marking a step closer to the final phase of the airline business disposal that will complete the consolidation of all AirAsia airlines under AirAsia X,” chief financial officer Mun Hui Teh said in the statement.

Teh noted that the strategic realignment will deliver value directly to shareholders, while positioning Capital A for its next phase of growth as a focused, high-growth multi-platform travel and digital group, distinct from the airline operations.

Post-consolidation, AirAsia X will operate as a unified airline entity, while Capital A will focus on scaling its non-airline businesses — engineering arm ADE, logistics provider Teleport, travel platform AirAsia MOVE, F&B brand Santan, and brand licensing and IP division AirAsia Next.