Capital A Bhd is set to sell off a majority stake in its financial technology arm, Big Pay Pte Ltd, to an undisclosed but “very big” regional bank, according to chief executive officer Tan Sri Tony Fernandes. The company currently owns a 99.56% stake in BigPay.

Fernandes acknowledged that BigPay remains the only loss-making entity among Capital A’s non-aviation businesses. The decision to sell a majority share in the company stems from the need to address its capital requirements.

“It’s a good product, but it just hasn’t had enough capital. So, we’ve decided to sell the majority of BigPay to a very big regional bank — we’re in negotiations. It’s not just the regional bank; there are some major regional fintech players and global players that are considering it,” he said, adding that Capital A intends to retain a 30% stake in BigPay.

Last month, Fernandes revealed that Capital A had been seeking a partner to take a stake in and lead BigPay, following what he described as “tough” management challenges within the company.

As of the end of 2024, BigPay had more than 1.6 million cardholders, up from 1.5 million at the end of 2023, according to Capital A’s latest operating statistics.

Looking ahead, Fernandes stated that the company is also exploring opportunities to introduce Buy Now, Pay Later services for travel, while offering digital banking solutions to financial institutions across ASEAN, leveraging its extensive customer base.

“I’d rather concentrate on our top three businesses — Asia Digital Engineering, Teleport, and AirAsia Move. We hope to continue growing Santan and Abc International, while retaining a small stake in BigPay,” he said.

Shares of Capital A, which recently secured approval from Bursa Malaysia for its regularisation plan to exit the Practice Note 17 status, closed one sen or 1.28% higher at 79 sen on Wednesday, giving the company a market capitalisation of RM3.42 billion.

(Source: The Edge Malaysia)

• TAGS:
• BigPay
• Capital A
• Investment
• Tony Fernandes