KHAZANAH Nasional Bhd, the majority shareholder of Malaysia Airlines (MAS), is believed to have started discussions with the government on the restructuring of the national carrier, and an announcement may come in a few weeks.
Business Times understands that Khazanah has held several meetings with the government over the last few weeks on the future of the ailing carrier.
“The announcement on MAS will possibly be made next week onwards,” a person familiar with the matter told Business Times yesterday.
It is believed that MAS will opt for a delisting from the Main Market as the first step to revive its fortunes.
Should the plan get the green light from the government, Khazanah will buy back the remaining MAS shares that it does not currently own. The move will enable the government investment arm to privatise the airline.
Khazanah holds 69.4 per cent stake in the national carrier, with the government holding a golden share.
MAS is worth RM4.01 billion yesterday after its share price inched 0.005 sen to close at 24 sen on Bursa Malaysia.
Meanwhile, another source said MAS favours the idea of delisting to make way for privatisation, rather than selling it to a third party or declaring bankruptcy. The source said the worst-case scenario for the airline is to opt for a complete shutdown.
“It is the last resort but it would be difficult.
They can’t just close down a national carrier. The airline has to work this out with the government.”
There has been much speculation on the fate of MAS, from privatisation to the selling of its subsidiaries and declaring bankruptcy.
The airline’s head honcho, Ahmad Jauhari Yahya, announced on June 25 that the only option to ensure the airline’s survival is by making radical changes to its business structure.
MAS has been hit by financial losses over the years.
Last year, the airline reported a wider net loss of RM1.17 billion from a loss of RM432.59 million in 2012 despite revenue growing to RM15.12 billion from RM13.76 billion.