Bursa Malaysia has rejected Capital A’s extension to complete its proposed share distribution of AirAsia X Bhd’s (AAX) shares. However, the company is confident in its ability to follow through in sync with AirAsia X’s private placement. AirAsia X has been given until January 19 2026, to complete the distribution and provide the necessary official documentation to hand over to Capital A investors secured in the deal.
The Deal
Capital A has offered to sell off its current shares in AAX amid the latter’s consolidation plans to existing shareholders. However, when Capital A sought an extension on the entitlement date from Bursa Malaysia, the proposal was rejected. Despite the rejection of its extension request, the shares will be allotted and issued by AAX alongside its private placement as planned.
The distribution of these shares is the main focus of the deal. The idea behind this is that it will be part of a new company restructuring once these shares are sold, and as a result, the low-cost airline will be under one unified banner to consolidate its brand activity: The AirAisia Group.
The Deadline
The date to meet these targets caused a few delays in the proceedings, the issues being attributed to documentation errors by the investors, who Capital A believed had sufficient time to complete the relevant paperwork, after announcing their new entitlement date. In a statement, it said:
“For the avoidance of doubt, Capital A had proceeded to announce the Entitlement Date on the premise that there was sufficient time for the identified investors to provide the necessary documentation. At the time of the announcement of the Entitlement Date, there was no indication suggesting that the identified investors would be unable to meet the deadlines set by AAX, and it was reasonable to expect that the AAX Private Placement would be completed within the approved timeframe, i.e. by 31 December 2025, in line with AAX’s target completion date.”
They had asked for an extension after going over their previous entitlement date of December 3, 2025, but did not find the approval from the Bursa Malaysia stock authorities to extend it. These changes do not seem to have affected the corporate interests of Capital A or AirAsia X apart from a slight alteration to their timeline, but the private placement must be completed by January 19 2026.
Capital A, in a statement, further said:
“The Distribution remains subject to the completion of the Private Placement by AirAsia X Berhad (“AAX”), as the new AAX shares must be issued before they can be distributed to entitled Capital A shareholders. Following the approval granted by Bursa Securities to AAX for an extension to complete its Private Placement by 19 January 2026, Capital A’s timeline will align accordingly. Upon issuance, the new AAX shares will be allotted to Capital A shareholders as planned.”
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