Saturday, July 12, 2014

State Fund Plans To Take Malaysia Airlines Private For Restructuring


Thu., July 3, 2014
Malaysian state investor Khazanah Nasional Bhd plans to take Malaysian Airline System Bhd (MAS) private as the first step in a major restructuring of the loss-making airline following the disappearance of its Flight MH370, two people with direct knowledge of the matter told Reuters. A de-listing would pave the way for Khazanah to revive the ailing carrier, possibly by selling off its profitable engineering, airport services or budget airline units, trimming its bloated payroll and installing a new management team. The restructuring and potential sale of MAS is politically fraught due to heavy opposition to job losses from its powerful labor union, which has hampered previous revival plans, and its status as Malaysia's national flag-carrier. At MAS's current price of 21 sen per share, majority shareholder Khazanah would need to pay only 1.05 billion ringgit ($328 million) for the 30.6 percent of shares it does not already own, according to Reuters calculations.

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