Malaysia Airlines to be delisted

[webfact]

RESTRUCTURING
Malaysia Airlines to be delisted
The Star/Asia News Network 

KUALA LUMPUR: -- Malaysia Airlines' (MAS) largest shareholder, Khazanah Nasional Bhd plans to de-list the ailing national carrier under its restructuring plan which will see it paying out a total of RM1.38bil.

It said on Friday it had submitted a request to MAS to undertake a selective capital reduction and repayment exercise (SCR) of 27 sen a share under the restructuring exercise, which would take six to 12 months to complete.

Khazanah owns 11.59 billion shares of MAS or 69.3%. Under the exercise, this would entail it forking out RM1.38bil to buy the remaining 5.118 billion shares, which it does not own.

"The proposal will enable minority ordinary shareholders of MAS to receive a capital repayment amount of 27 sen per ordinary share. This represents a 12.5% premium to closing price on Aug 7 2014 and a 29.2% premium to the three-month volume weighted average market price (VWAMP)," Khazanah said.

"Upon successful completion of the proposed SCR, Khazanah will become the sole ordinary shareholder of MAS, which would lead to a de-listing of MAS," said the government investment fund.

However, some quarters said while MAS was biting the bullet in the restructuring exercise, an analyst described it as a "moral hazard" based on the poor financial performance of the airlines. Another analyst said minority shareholders should accept the 27 sen offer.

Meanwhile, MAS said it had received notice of Khazanah’s intentions to take full ownership and de-list the airlines.

"Our board of directors will be deliberating this proposal and an official response from the company will be issued later. During this period, our business operations remains unchanged," it said.

In its first quarter ended March 31, 2014, MAS had posted net losses of RM443.39mil compared with RM278.83mil a year ago. Its revenue was marginally higher at RM3.6bil compared with the RM3.537bil a year ago.

Its net asset per share was 21 sen compared with 24 sen a year ago.

Trading in Malaysia Airlines (MAS) was suspended from 9am to 5pm on Friday.

Khazanah’s deslisting plan under the restructuring exercise plan comes after one of the loss-making carrier’s aircraft, MH370, disappeared on March 8. On July 17, MH17 was shot down over Ukraine.

A total of 537 people have lost their lives in the two tragedies.

Below is the statement issued by Khazanah Nasional:

We are pleased to announce that Khazanah Nasional Berhad (Khazanah) has today submitted a formal request to the Board of Directors of Malaysian Airline System Berhad (MAS) to undertake a selective capital reduction and repayment exercise ("Proposed SCR") of MAS’ ordinary shares.

The proposal will enable minority ordinary shareholders of MAS to receive a capital repayment amount of RM0.27 per ordinary share. This represents a 12.5% premium to closing price on 7 August 2014 and a 29.2% premium to the 3-month volume weighted average market price ("VWAMP").

Upon successful completion of the Proposed SCR, Khazanah will become the sole ordinary shareholder of MAS, which would lead to a de-listing of MAS.

In June 2014, Khazanah had announced that 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. Nothing less will be required in order to revive our 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. Further, Khazanah is in the final stages of completing the overall restructuring proposal, and upon due process and approvals from the relevant authorities, regulators and the Special Shareholder, the Minister of Finance Incorporated, we envisage that additional detailed plans will be announced by the end of this month.

Source: http://www.nationmultimedia.com/aec/Malaysia-Airlines-to-be-delisted-30240538.html

 

[thenation]2014-08-08[/thenation]

[Maroon Watcher]

SAD This airline had a good reputaion in the travel trade built up over many years.

 

I hope a buyer can be found to save the jobs...

[Mosha]

SAD This airline had a good reputaion in the travel trade built up over many years.

 

I hope a buyer can be found to save the jobs...

 

What's happening is a renationalisation and restructuring. Some jobs may go, but it's not a full closure.

[tingtongteesood]

All airlines and public transport services should be nationalized and run for the benefit of the people as well as all other public services including hospitals, schools, the electric and water companies etc. Let the banks and greedy corporates make their money from other businesses.....Renationalization should be a good thing.

[Maroon Watcher]

... I was thinking of a Private enterprise - to re-launch asap. (maybe with an adjusted name)

 

I see from the next post, it should be nationalised - nice thought, but not airlines...

 

they are International and even the the best government controlled airlines fail -

 

without disasters...

 

 

SAD This airline had a good reputaion in the travel trade built up over many years.

 

I hope a buyer can be found to save the jobs...

 

What's happening is a renationalisation and restructuring. Some jobs may go, but it's not a full closure.

 

 

[kinmaew]

Apart from the two disasters I resolved never to fly them again after my last trip in 2013. Was for work, paid top dollar as it was a direct flight and guess what they gave me for dinner? Some kind of long pastie/pastry roll and a drink and thats it!!! For a full service airline I was wondering when the main would come it didnt!! That did it for me with so much competition out there plus too many male flight attendants. I want to be served by cute kitty waitresses call me superficial but thats how it is.

[Loptr]

All airlines and public transport services should be nationalized and run for the benefit of the people as well as all other public services including hospitals, schools, the electric and water companies etc. Let the banks and greedy corporates make their money from other businesses.....Renationalization should be a good thing.

 

Then the question becomes, does a country need a national airline? From a purely economic standpoint it really does not make sense... When was the last time Thai Air turned a profit?  

[Harsh Jones]

All airlines and public transport services should be nationalized and run for the benefit of the people as well as all other public services including hospitals, schools, the electric and water companies etc. Let the banks and greedy corporates make their money from other businesses.....Renationalization should be a good thing.

 

The best and most cost effective airports are the private for profit ones. Not the ones run for the "benefit of the people" aka hammer and sickle