THE Department of Trade and Industry (DTI) said Capital A Bhd., which trades as AirAsia, and Vietnam electric vehicle maker VinFast LLC have expressed interest in expanding their presence in the Philippines.
Trade Secretary Cristina A. Roque said she received indications of the two companies’ interest on the sidelines of the ASEAN Summit and other related events last week.
She described their plans as being in the exploratory stages.
If their projects materialize, they could join Thailand’s SHERA Public Co. Ltd., which has made a P2.9-billion investment commitment in a building materials factory.
SHERA is currently building a green and artificial intelligence-driven fiber cement facility in Mabalacat, Pampanga. It is expected to start operations by the first quarter of 2025.
“There are other companies that are exploring, like Capital A. But I can’t really talk about the details because we’re still in the negotiation part,” she said in an online media briefing on Monday.
In a statement, Capital A on Monday announced that its shareholders approved the proposed disposal of the group’s aviation business to AirAsia X.
“With shareholder approval to divest the aviation business, we are unlocking a bright new future by delineating our pure-play aviation business from aviation support services,” said Tony Fernandes, chief executive officer of Capital A.
“This clarity will benefit both shareholders and customers, allowing us to redefine the future of travel in the region,” he added.
With the approval, the group can now separate its aviation and non-aviation businesses. This will allow the consolidation of its aviation businesses, which will synergize its short- and long-haul operations.
“Today’s approval from our shareholders also paves the way for Capital A to move to a clean balance sheet that will provide the clarity and flexibility to finalize our regularization plan and exit Practice Note 17 (PN17) status soon,” Mr. Fernandes said.
Issued by Malaysia’s stock exchange, PN17 status is a classification for listed companies that are in financial distress.
The company said it plans to seek a court order to distribute the consideration shares to shareholders through a planned reduction and repayment.
“These critical steps will enable Capital A to achieve a clean balance sheet and focus on submitting its regularization plan before the year end, with the aim of exiting PN17 status,” it added.
Meanwhile, Ms. Roque said that other companies also expressed interest in investing in the Philippines.
“There are also talks about renewable energy; there were also talks about electric vehicles (EV) also planning to come in from Vietnam, and then there’s also retail,” she said.
She identified the EV manufacturer from Vietnam as VinFast. — Justine Irish D. Tabile