KUALA LUMPUR: Khazanah Nasional Bhd is not convinced by Golden Skies Ventures Sdn Bhd's US$2.5 billion (RM10.88 billion) offer to fully acquire its subsidiary Malaysia Airlines Bhd, despite the latter having claimed a financing back up from a European bank.
The sovereign wealth fund is skeptical on the proposal, saying that Golden Skies had not been able to prove its source of funding.
Khazanah managing director Datuk Shahril Ridza Ridzuan said it would be “cautious” on whether the offer was made with financial backing, given the global airline crisis and credit risk aversion.
“Plus their (Golden Skies') original proposal relied 100 per cent on debt funding from third parties. They do not have any equity of their own,” Shahril told the New Straits Times (NST) today.
Khazanah is Malaysia Airlines' sole shareholder through its holding company Malaysia Aviation Group (MAG).
Reuters today reported that Golden Skies had secured loans in excess of US$2.5 billion from a European bank and would take up to four months to get the long-term financing.
The Edge weekly had first reported Golden Skies' proposal over the weekend.
The company reportedly declined to reveal the firms involved and said it was also in talks with other foreign banks and private equity firms for further funding.
Golden Skies had submitted its proposal to Morgan Stanley, the banker hired by Khazanah.
Air France-KLM, Japan Airlines and domestic carriers AirAsia Group Bhd and Malindo Air were previously said to have shown interest in Malaysia Airlines.