Kuala lumpur: Capital A Bhd has unveiled a strategic capital structure optimisation initiative, which includes the potential divestment of its significant stake in BigPay Pte Ltd and a planned distribution of its shares in Tune Protect Group Bhd.
According to BERNAMA News Agency, the exercise will be conducted through Capital A's subsidiary, Move Digital Sdn Bhd (MDSB), under a court-supervised framework. The company has already submitted the necessary applications to the High Court of Malaya in Kuala Lumpur, in line with the provisions of Sections 366, 368, and 369 of the Companies Act 2016.
The initiative focuses on three main areas: the potential divestment of MDSB's equity in BigPay, an orderly distribution of the stake in Tune Protect, and the recovery of receivables estimated at RM32.2 million. Capital A aims to distribute proceeds from these assets to its creditors, primarily consisting of Capital A and its related entities.
MDSB serves as an intermediate holding company for legacy investments and does not engage in any direct business operations. Capital A emphasized that MDSB's activities are distinct from AirAsia Move Sdn Bhd, the group's digital travel platform, which remains unaffected by this exercise and continues its operations without interruption.
The group stated that this move is part of a disciplined capital allocation strategy, intended to eliminate funding for loss-making units like BigPay and redirect capital towards core operations with higher returns, thereby maximizing long-term shareholder value. This structural exercise is expected to result in the deconsolidation of BigPay's historical operating losses, which have significantly impacted earnings in previous financial years.
By removing these legacy losses, Capital A aims to strengthen its balance sheet, improve earnings quality, and enhance financial flexibility. Group CEO Tan Sri Tony Fernandes noted that the exercise demonstrates the group's commitment to accountability and governance, allowing it to concentrate resources on high-growth businesses. This strategic move is seen as a way to bolster the group's financial position and focus efforts on its strengths.