23-Dec-2009 8:34 AM

MAS to launch share offer to raise USD786 million

Malaysia Airlines confirmed (22-Dec-2009) plans to offer 1,671 million new shares, to raise approximately USD786.4 million (MYR2.7 billion), to be offered to shareholders on the basis of one rights share for every one share held, at a price of USD0.47 (MYR1.60) each. The issue is expected to be completed by 1Q2010.

  • Proceeds will be used to fund the carrier's future fleet growth and expansion plans as the airline prepares itself to capitalise on the economic recovery in 2010 and beyond. The issue is also expected to improve MAS’ liquidity and financial flexibility.
  • Khazanah Nasional Berhad (Khazanah) and Penerbangan Malaysia Berhad (PMB) which collectively own a 69.3% stake in MAS, have undertaken to take up their full entitlement;
  • Khazanah has also provided an additional undertaking to subscribe for the excess rights shares to the extent that the combined total of its and PMB’s subscription of the rights shares would represent about 71% of the total rights issue. The remaining portion will be underwritten by underwriters to be determined in due course
  • Bursa Malaysia Securities Berhad approved (22-Dec-2009) the carrier's request for a suspension in the trading of its securities on the main market with effect from 0900 on 22-Dec-2009 to 1700 on 22-Dec-2009. [more - share offer] [more - Maybank Investment Bank and CIMB Investment Bank Berhad] [more - Bursa Securities]

Malaysia Airlines: “This is the right time to raise funds as we are able to tap into the improved capital market sentiments. Proceeds will be used for our fleet renewal programme and working capital. This gives us a strong and sustained platform for growth as we transform from a 100% leased fleet to owning at least a third of the aircraft in our core fleet. Owning the aircraft will also provide us the flexibility to optimize our balance sheet and financing commitments,” Azmil Zahruddin, CEO/ Managing Director. Source: Malaysia Airlines, 22-Dec-2009.

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