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Monday, Aug 11, 2014

Malaysia

Malaysia Airlines' shares rise on takeover offer

Reuters | Monday, Aug 11, 2014

A Malaysian Airlines flag flies in front of the traffic control tower at Kuala Lumpur International Airport in Sepang July 18, 2014. Malaysian Airlines System Bhd (MAS) shares fell sharply on Friday on news one of its planes was downed in Ukraine, raising pressure on the state-run carrier to try to restore investor confidence after the second major disaster in months.

KUALA LUMPUR - Shares of Malaysia Airline System (MAS) rose as much as 10.4 per cent on Monday after state fund Khazanah Nasional said it will offer 27 sen (S$0.11) for each share in the company it does not own, amounting to nearly 1.4 billion ringgit to take the troubled airline private.

MAS shares were trading at 26 sen per share at 0101 GMT, 8.3 per cent higher than the 24 sen when the stock was suspended on Friday. Its shares topped the most active list on the Malaysian bourse on Monday.

The move to take MAS private by Khazanah, which owns 69.37 per cent 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.

 
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