(From left) Travel data provider OAG's regional director Mayur (Mac) Patel, Capital A Bhd chief executive officer Tan Sri Tony Fernandes, and Kuala Lumpur International Airport Terminal 2 operations general manager Shahrunnizam Abd Jamil on Tuesday. Capital A will submit its regularisation plan to Bursa Malaysia once it gets the approval of AirAsia X Bhd shareholders, according to Fernandes. (Photo by Shahrin Yahya/The Edge)

SEPANG (Oct 15): Capital A Bhd (KL:CAPITALA) said on Tuesday it is confident that the company holding low-cost carrier AirAsia will be able to exit its Practice Note 17 (PN17) status by the end of 2024, earlier than previously expected.

The company is now aiming to exit PN17 status by December, ahead of its previous target of the first half of 2025, said Capital A chief executive officer Tan Sri Tony Fernandes, following shareholders’ approval for the disposal of its aviation business to sister company AirAsia X Bhd (KL:AAX).

The plan still requires the approval of AAX shareholders, with an extraordinary general meeting scheduled for Wednesday.

“If that's approved, then Capital A [would be] positive equity, and we will submit a plan for regularisation,” Fernandes said. “I am hoping we can get out by December.”

Nearly 100% of Capital A shareholders voted in favour of the disposal resolutions on Monday.

“I can't predict the shareholders, but I can only say the share prices reacted very well since we put the proposal out — this indicate that the market wants this to happen,” Fernandes said.

Shares of Capital A have gained 46% from a two-year low since the aviation business sale announcement in April. At Tuesday's noon break, the counter was traded unchanged at 92.5 sen, valuing the group at RM3.97 billion.

AAX in April announced the acquisition of Capital A’s aviation business — AirAsia Aviation Group Ltd and AirAsia Bhd — for RM6.8 billion.

Capital A will get RM3 billion worth of AAX shares in exchange, while AAX will assume a RM3.83 billion debt that Capital A owes the aviation business.