Capital A Clears Final Thai Hurdle, Downgraded to Neutral at RM0.95 Target

KUALA LUMPUR, Oct 21 — Capital A Bhd has cleared its final regulatory hurdle for the disposal of its aviation unit after waiving a condition set by the Thai Securities and Exchange Commission (SEC). The waiver removes the need for an exemption from conducting a mandatory tender offer for Asia Aviation PCL, the Thai-listed parent of Thai AirAsia.

Thai Hurdle

The group and AirAsia X Bhd (AAX) have amended their sale and purchase agreement for AirAsia Aviation Group Ltd, allowing completion of the transaction by December 2025. Analysts maintained the target price at RM0.95, based on eight times FY2026 earnings, but downgraded Capital A to Neutral from Buy, citing fair valuation.

The move allows AAX to retain its 40.71 per cent stake in Asia Aviation, with no impact on Thai AirAsia’s operations. Following completion, Capital A will seek to lift its PN17 status by year-end, with all conditions precedent expected to be fulfilled by end-October.

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