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Malaysia Airlines to go private

Friday, August 08, 2014 - 00:48

Malaysia's state investment fund will pay 1.4 billion ringgit ($435.73 million) to take troubled Malaysian Airline System (MAS) private, the airline says. Rough Cut. No Reporter Narration.

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ROUGH CUT (NO REPORTER NARRATION) STORY: Malaysia's state investment fund will pay 1.4 billion ringgit ($435.73 million) to take troubled Malaysian Airline System (MAS) private, the airline said on Friday (August 8) , paving the way for a "complete overhaul" of its loss-making operations following two devastating jetliner disasters this year. Khazanah Nasional will offer 27 sen for each share in the company it does not own, amounting to 1.38 billion ringgit, a 12.5 percent premium to the closing share price on Thursday (August 7) , MAS said in a statement after suspending its shares. The move had been expected after the national carrier lost two airplanes this year, sparking a slump in bookings that has hurt its already struggling operations amid intense competition from budget Asian airlines. Khazanah, which owns 69.37 percent of MAS, said it expected to give more details of the planned restructuring by the end of August after it had secured approval from shareholders. 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. Khazanah said it will need cooperation from all parties to undertake the restructuring, covering the airline's operations, business model, finances, staff and the regulatory environment.

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Malaysia Airlines to go private

Friday, August 08, 2014 - 00:48