Malaysia Airlines Suspends Trading of Stocks Pending Privatisation of Air Carrier; Majority Investor Offers 27 Sen per Share
By Vittorio Hernandez | August 8, 2014 2:01 PM EST
Malaysia Airline System suspended on Friday the trading of the company's shares on the Malaysian Stock Exchange as part of the restructuring plan of the air carrier that was financially hit by two air tragedies in March and July 2014.
The air carrier will be privatised. State-run Khazanah Nasional, which holds a 69.37 stake in the airline, is offering 27 sen per share for stocks it does not hold yet. That would amount to almost $470 million or 1.4 billion ringgit.
Khazanah will conduct a comprehensive review and restructuring of the air carrier, owner of the two Boeing 777 jets were involved in the two biggest air disasters this year. MH370, with 239 people on board, left Kuala Lumpur on March 8 bound for Beijing and mysteriously disappeared. It remains missing until now, but all passengers and crew are presumed dead.
MH17 left Amsterdam on July 17 bound for Kuala Lumpur with 298 people on board. It was downed by a missile and crashed in Ukraine.
But prior to the two aviation tragedies, Malaysia Airlines was operating at a loss for the past three years. The air carrier said privatising the company would give it space to put in place appropriate capital structure to meet its substantial funding requirements in the next few years and at the same time keep running amid a high level of debt.
"It is easier to restructure if it's a private company ... They don't need to worry about making announcements and the timing of it," said Ang Kok Heng, chief investment officer of Phillip Capital Management, based in KL.
The air carrier's shares have tumbled down 23 per cent in 2013, while analysts estimate it would lose over 1 billion ringgit as it deals with costs of the two tragedies and lesser passengers.
To contact the editor, e-mail:
Join the Conversation
- Hungry Jack’s Joins McDonald’s Australia Monopoly Campaign With McOpoly Promo
- Apple Inc (AAPL) Stock Surge Expected Soon as Analysts Predict iPhone Opening Weekend Sales
- Furore Over Facebook Mark Zuckerberg $10m Fortress In San Francisco
- Alibaba Sells Extra Shares; IPO Raises $25B, Breaks Global Record
- Viral Photo: Philippine Mall Giant Pulls Out T-Shirt With Rape Joke
- Nexus 6, 8 Release Date is Halloween 2014 as Android L Intro Set for October 16
- Galaxy Note 4 vs iPhone 6 Plus: Better Performing Display and Best Overall Screen
- Samsung Galaxy Note 4 vs Samsung Galaxy S5: Battle of the Samsung Flagship Smartphones
- Apple iPad Air 2, OS X Yosemite Release Date Set For October, While iPad Mini 3 With Retina Headed For 2015 Release
- Moto G 2014 v Asus Zenfone 5 – Specification Comparison Shows Zenfone 5 Is A Good Alternative for Moto G
- Android 5.0 L Nexus 4, Nexus 5, Nexus 7 Release in October, Google Employees Offer Hint
- Purported Xiaomi Redmi Note Successor Powered With Monstrous Processor Under Wraps, Will Take On Meizu MX4