Highlight Khazanah to offer RM1.4 billion to take over MAS, de-list carrier

by **Cals** Fri 08 Aug 2014, 17:34

Highlight Khazanah to offer RM1.4 billion to take over MAS, de-list carrier

Business & Markets 2014

Written by Surin Murugiah of theedgemalaysia.com

Friday, 08 August 2014 10:56

KUALA LUMPUR (Aug 8): Khazanah Nasional Bhd is offering 27 sen each to buy the remaining Malaysian Airline System Bhd shares it does not own for a total of some RM1.4 billion to take the beleaguered airline private.
In a statement Friday, the state investment arm, which owns 69.37% of MAS, said it had submitted a formal request to MAS to undertake a selective capital reduction and repayment exercise.
Khazanah had in June this year said it was in the midst of undertaking a comprehensive review of MAS, in consultation with the special shareholder, the Minister of Finance Incorporated.
“Khazanah further clarified that subject to the necessary approvals from the relevant authorities, it would announce the proposed restructuring scheme within a period of 6 to 12 months.
“We reiterate that the proposed restructuring will critically require all parties to work closely together to undertake what will be a complete overhaul of the national carrier on all relevant aspects of, inter alia, the airline’s operations, business model, finances, human capital and regulatory environment,” said Khazanah.
Khazanah said nothing less would be required in order to revive the national airline to be profitable as a commercial entity and to serve its function as a critical national development entity.
“In this regard, today’s proposal for de-listing represents the first stage of the restructuring scheme.
“We envisage that additional detailed plans will be announced by the end of this month,” it said.