* Shares rise as much as 10.4 percent
* Khazanah to give more details on restructuring plan by
* MAS expected to announce its April-June earnings on Aug.
(Add research house's comment, context, details and updates
KUALA LUMPUR, Aug 11 Shares of Malaysia Airline
System (MAS) rose as much as 10.4 percent on Monday
after state fund Khazanah Nasional said it will offer
27 sen for each share in the company it does not own, amounting
to nearly 1.4 billion ringgit ($435 million) to take the
troubled airline private.
MAS shares were trading at 26 sen per share at 0119 GMT, 8.3
percent higher than the 24 sen when the stock was suspended on
Friday. Its shares topped the most active list on the Malaysian
The move by Khazanah, which owns 69.37 percent of MAS,
follows a difficult period for the airline since the
disappearance of Flight MH370 on March 8. The loss-making
company's problems deepened on July 17 when its Flight MH17 was
shot down over Ukraine, killing all 298 people on board.
"We see the exercise as a good opportunity for shareholders
to exit the stock," MIDF Research wrote in a note to clients on
"Based on our estimates, we expect MAS' airline operations
to remain loss-making over the next few years premised on the
current weak yield environment and high jet fuel price," the
research house added.
Khazanah, chaired by Prime Minister Najib Razak, said it
expected to give more details of the planned restructuring by
the end of August after it has secured approval from
The airline and its key stakeholders are in talks with banks
for a strategic overhaul that could include the partial sale of
its engineering unit and an upgrade of its ageing fleet, sources
involved in the discussions have told Reuters.
The company turned in its worst quarterly performance in two
years in the January-March period and has been burning through
its operating cash.
MAS is expected to announce its April-June earnings on Aug.
20. Analysts said it could be the airline's weakest quarterly
performance yet partly due to flight cancellations after the
disappearance of MH370.
($1 = 3.1995 Malaysian ringgit)
(Reporting By Yantoultra Ngui and Al-Zaquan Amer Hamzah;
Editing by Michael Urquhart)