[UPDATED] Upping its A-game: AirAsia to be known as Capital A Bhd

KUALA LUMPUR – Shareholders of the AirAsia Group Bhd have passed a special resolution to change the company’s name to Capital A Bhd, according to a filing on Bursa Malaysia.

The filing dated January 27 detailed that the decision to change their name was passed during an extraordinary general meeting (EGM) held among stakeholders on January 5.

“The board of directors of AirAsia Group Bhd wishes to announce that the special resolution set out in the notice of the EGM dated January 5, 2022 was duly passed by the shareholders of the company,” read the filing.

It included how 304 shareholders responsible for 1.9 billion shares had given their approval for the name change, while 56 shareholders holding 5.6 million shares were against it.

Speaking at a press conference, group CEO Tan Sri Tony Fernandes said Capital A will now be seen as an investment holding company and the mothership funding of all their subsidiary businesses.

He said these include the flagship airline business, cargo service, ride-hailing, food delivery services, and business-to-consumer grocery line, all of which will fall under the Capital A brand.

“We’re an investment holding company now, that’s why it’s named Capital A, which will function as the investment holding company for these various companies, so we’re like a fund now…funding all these businesses.”

He said it is the company’s ambition to move away from its dependency on the airline business, as it increases the revenue and value of other businesses under its purview.

“For now, most of the revenue is coming from the airline, but our logistics arm is catching up fast, so maybe in five years’ time, 50% will be coming from the airline and 50% from the other non-AirAsia business.”

Concerning the company’s Practice Note 17 (PN17) status on Bursa Malaysia, Fernandes insisted the listing will not affect efforts to remain profitable, saying the PN17 status was purely down to “accounting”.

“I have spoken to Bursa to relook at its rules because it’s really not clear to the laymen.

“But ultimately, the PN17 has had zero effect; AirAsia was PN17 two years ago and we still managed to raise RM2.5 billion in capital.

“So the PN17 is not stopping any of us, as we’re focused on growing and adding value to the company.”

Last week, Bursa had dismissed AirAsia Group Bhd’s appeal seeking to extend an 18-month relief period from being classified as a PN17 company that ended on January 7, 2022.

Following the classification, Fernandes had said the company was in the midst of formulating a plan to regularise its financial health, asserting the company’s robust and diverse portfolios will allow it to fast-track the regularisation of its financial position and has affirmed the strong viability of its business moving forward. – The Vibes, January 28, 2022