Khazanah Nasional, the investment holding arm of the Malaysian government, has announced that it will take full ownership of the financially troubled Malaysia Airlines. It means that the airline will be taken off the stock market to become a private company. MAS shares have already been de-listed and suspended from trading earlier today.
Currently the majority stakeholder with 69.4 per cent of shares, Khazanah is now looking to purchase all remaining stocks of the company with an offer of 0.27 ringgit (US$0.08) per share – roughly 12.5 per cent above the closing price yesterday. In total, the move will cost Khazanah some 1.4 billion ringgit (US$435 million) but it will also provide MAS a much needed respite from the harsh reality of the stock market as it faces the daunting task of regaining public trust after two widely reported incidents this year – the disappearance of MH370 and the tragic shootdown of MH17 over Ukraine (see story).
According to a statement issued by the Khazanah, MAS will undergo a “complete overhaul” as the company looks to restructure its business in hopes of a quick turnaround. The Malaysian flag carrier is reportedly considering a rebranding campaign that may include a company name change and network restructuring (see story).
For more information, visit malaysiaairlines.com