Malaysia Airlines is going to be de-listed after the airlines’ board of directors agreed to table a proposed offer from its majority shareholder, Khazanah Nasional Berhad (“Khazanah”). That proposal will be presented to MAS shareholders at an Extraordinary General Meeting which will be scheduled at a later date.
Khazanah’s is proposing 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, which represents a 12.5% premium to closing price on Aug. 7 and a 29.2% premium to the three-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, 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.
In its statement, Khazanah said, “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.”
And the company continued, “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.”
The airline’s board of directors indicated that Malaysia Airlines will continue to operate all its current flights, schedules and reservations. And its focus will remain on delivering the world class customer service that we are known for around the world.
Khazanah Nasional Berhad is the strategic investment fund of the Government of Malaysia entrusted to hold and manage the commercial assets of the Government and to undertake strategic investments.