Government to fully take over Malaysia Airlines after delisting
Trading of Malaysia Airlines shares have been suspended on August 8 and the beleaguered company will be taken entirely into state hands after it was hit by two disasters that killed hundreds of people.
Trading was suspended in the morning and the company soon afterwards announced it would be removed from the stock market.
The suspension of shares is the first step in plans by Khazanah Nasional Bhd to take MAS private as the first step in a major restructuring. The state investor already owns 69 per cent of the airline
Khazanah Nasional said it planned to buy out minority shareholders at a premium to the airline’s recent share price. Khazanah will offer 27 Malaysian sen for each share in the company it does not own, amounting to nearly 1.4 billion ringgit ($470 million) to take the airline private. Its closing price on August 7 was 24 sen.
Khazanah said a “complete overhaul” of the airline would be carried out.
The business outlook for the Malaysian flagship carrier deteriorated after one of its aircraft, flight MH370, disappeared on March 8 this year. The airline’s problems deepened on July 17 when another jet, flight MH17, was shot down over Ukraine, killing all 298 people on board.
The disastrous run sped up efforts for the government to restructure the airline, sources said – even before two almost unfathomable crashes the carrier’s financial performance was among the worst in the industry.
A delisting paves the way for Khazanah, which is chaired by the Malaysian prime minister, Najib Razak, to revive the loss-making carrier, possibly by selling off its profitable engineering, airport services or budget airline units, trimming its payroll and installing a new management team.
Trading of Malaysia Airlines shares have been suspended on August 8 and the beleaguered company will be taken entirely into state hands after it was hit by two disasters that killed hundreds of people. Trading was suspended in the morning and the company soon afterwards announced it would be removed from the stock market. The suspension of shares is the first step in plans by Khazanah Nasional Bhd to take MAS private as the first step in a major restructuring. The state investor already owns 69 per cent of the airline Khazanah Nasional said it planned to buy out minority...
Trading of Malaysia Airlines shares have been suspended on August 8 and the beleaguered company will be taken entirely into state hands after it was hit by two disasters that killed hundreds of people.
Trading was suspended in the morning and the company soon afterwards announced it would be removed from the stock market.
The suspension of shares is the first step in plans by Khazanah Nasional Bhd to take MAS private as the first step in a major restructuring. The state investor already owns 69 per cent of the airline
Khazanah Nasional said it planned to buy out minority shareholders at a premium to the airline’s recent share price. Khazanah will offer 27 Malaysian sen for each share in the company it does not own, amounting to nearly 1.4 billion ringgit ($470 million) to take the airline private. Its closing price on August 7 was 24 sen.
Khazanah said a “complete overhaul” of the airline would be carried out.
The business outlook for the Malaysian flagship carrier deteriorated after one of its aircraft, flight MH370, disappeared on March 8 this year. The airline’s problems deepened on July 17 when another jet, flight MH17, was shot down over Ukraine, killing all 298 people on board.
The disastrous run sped up efforts for the government to restructure the airline, sources said – even before two almost unfathomable crashes the carrier’s financial performance was among the worst in the industry.
A delisting paves the way for Khazanah, which is chaired by the Malaysian prime minister, Najib Razak, to revive the loss-making carrier, possibly by selling off its profitable engineering, airport services or budget airline units, trimming its payroll and installing a new management team.
