(Reuters) – Malaysia’s Capital A said on Wednesday it has terminated a $1.15 billion deal to list its brand management unit on the Nasdaq via a SPAC merger and also proposed plans for a capital reduction of its shares.
Investment firm Capital A, which recently got shareholder approval to sell its aviation unit, budget carrier AirAsia, said it will soon submit plans for the capital reduction to “set off” its losses, aiming to exit its Practice Note 17 (PN17) status.
PN17, or financially distressed, is a classification imposed by Malaysia’s stock exchange. Firms under this status may be de-listed from the exchange if they fail to stabilise their finances within a set time frame.
The travel and lifestyle conglomerate has also abandoned a deal to list its brand management unit, Capital A International, in the Nasdaq via a $1.15 billion merger with a SPAC called Aetherium Acquisition Corp.
A SPAC (special purpose acquisition company), or blank-check firm, is a publicly listed shell company that raises funds to merge with a private company.
The deal, which was finalised in February, was terminated as Aetherium Acquisition received a delisting notice from the Nasdaq in June, Capital A said.
The company added it will revisit plans to list its units in the U.S. after its financial regularization plans are implemented.
(Reporting by Aaditya Govind Rao in Bengaluru; Editing by Eileen Soreng)
