Capital A To Focus On Restructuring, No Dividend Plans Yet - CEO
SEPANG, March 10 (Bernama) -- Capital A Bhd will not resume dividend payments soon, as it is prioritising its restructuring efforts and debt reduction, said chief executive officer (CEO) Tan Sri Tony Fernandes.
He emphasised that Capital A’s priority is to pay off debts incurred during the COVID-19 pandemic, particularly within its aviation segment, before considering any dividend distribution.
“My priority is to clear the debt incurred during COVID-19. Once we have done that, we will look at dividends, which will take between three and four years,” he said during a press conference at the Capital A - Next Chapter event today.
Capital A, which last paid dividends in the financial year ended Dec 31, 2019, at 90 sen per share, is currently undergoing a major restructuring to exit its Practice Note 17 (PN17) status.
The company expects to complete the process by May 2025, pending shareholders and High Court approvals.
Fernandes highlighted that any profits generated will be reinvested into the group’s growing business verticals, including Teleport and Santan, rather than being distributed to shareholders.
“Whatever profit, we are going to re-invest it, just like we do with Teleport and Santan,” he added.
Fernandes also said the decision to withhold dividends underscores Capital A’s strategy to strengthen its financial position before resuming shareholder payments.
-- BERNAMA