Log in
Login
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesHot NewsMost Read NewsRecomm.Business LeadersCalendar 

Malaysia Airlines - Malaysian Airline System Berha : Malaysia Airlines Announces Proposed Capital Restructuring & Rights Issue

share with twitter share with LinkedIn share with facebook
share via e-mail
0
11/28/2012 | 10:50am CEST

Kuala Lumpur, 27 November 2012: Malaysian Airline System Berhad ("MAS" or the "Company"), today announced the details of its Proposed Capital Restructuring Exercise and Proposed Renounceable Rights Issue.

The Proposed Capital Restructuring aims to rationalise the Company's balance sheet and reduce its accumulated losses to the extent possible by reducing both the par value of each existing ordinary share of MAS and its share premium account.

The par value adjustment involves a reduction of RM0.90 for each existing ordinary MAS share of RM1.00 each where the reduction in share premium account will give rise to a credit reserve of up to RM8,003.91 million which will be utilised to reduce the accumulated losses of MAS. Based on audited accounts as at 31 December 2011 and unaudited accounts as at 30 September 2012, the Company's accumulated losses stood at RM7,863.72 million and RM 8,188.04 million respectively. The Proposed Capital Restructuring will not have any effect on the net asset position of the Company.

Post-completion of the proposed capital restructuring exercise, MAS intends to implement a proposed renounceable rights issue to raise gross proceeds of up to RM3,100 million. The basis of entitlement and the issue price have not been fixed at this juncture to provide flexibility to the Board in respect of the pricing and the number of Rights Shares to be issued. Major shareholder Khazanah Nasional Berhad has given MAS its irrevocable and unconditional undertaking to subscribe for its full entitlement under the proposed rights issue.

Proceeds from the proposed rights issue are to finance capital expenditure and working capital requirements and to reduce borrowings.

Malaysia Airlines Group CEO, Ahmad Jauhari Yahya said, "As part of our ongoing efforts to rebuild MAS, the proposed restructuring reduces accumulated losses to better reflect the Company's fundamentals and to facilitate our objective of attaining a stronger financial position moving forward. The proposed rights issue, which is the fourth pillar in the long term financing plan we announced earlier this year, will provide MAS with improved liquidity and financial flexibility, crucial in allowing us to execute our financing plans in the near term".

Commenting on the ongoing turnaround of MAS, he said, "We have made significant progress towards the operational turnaround of MAS. Costs have been reduced during the three quarters of this year, covering big expense items like fuel, advertising, leasing charges, aircraft handling and landing charges. These positive outcomes indicate that we are on track and encourage us to strive further whilst we are also focused on driving sales and high yields. Together with these initiatives, this exercise will expedite and facilitate the financial turnaround of the Company".

MAS has appointed CIMB Investment Bank Berhad as Principal Adviser for the Proposed Capital Restructuring and Proposed Rights Issue. Barring any unforeseen circumstances, the proposals are expected to complete by the second quarter of 2013.

For media enquiries, please contact:


Anbarasu Sundram
Malaysia Airlines
Email : anbarasu.sundram@malaysiaairlines.com
Phone : +603 7840 4485
Mobile : +6019 222 4952

distributed by
share with twitter share with LinkedIn share with facebook
share via e-mail
0
React to this article
Latest news
Date Title
04:02p CARMIKE CINEMAS INC : Amendments to Articles of Inc. or Bylaws; Change in Fiscal Year, Other Events, Financial Statements and Exhibits (form 8-K)
04:02p Zenoss to Showcase Real-Time Monitoring and Analytics Platform for Hybrid IT Environments
04:02p Imaging at the Speed of Light
04:02p NEVADA CLEAN MAGNESIUM : Announces 2016 Annual General Meeting Results and Interim CFO
04:02p Bentley and Shell Announce Global Framework Agreement
04:02p THE US ONCOLOGY NETWORK : Announces Affiliated Practices Chosen To Participate In Oncology Care Model (OCM)
04:02p Motor Trend OnDemand Now Available on Xbox One and Xbox 360
04:02p GLOBOFORCE : Announces WorkHuman Regional Forums
04:01p PRICER PUBL : increases the number of outstanding shares
04:01p EAST CAPITAL EXPLORER : Cancellation of repurchased shares and subsequent notification of major holdings of own shares
Latest news
Advertisement
Hot News 
WIRELESS : News Corp Agrees To Buy Wireless Group For GBP220.3 Million
CHINA NEW ENERGY : Shares Fall As Loss Swells On Litigation Provision
STOBART : AGM Statement
AVINGTRANS : To Return GBP28 Million To Shareholders Via Tender Offer
KIADIS PHARMA : Orphan Drug Designation for ATIR101™ further expanded to include treatment in a hematopoietic stem cell transplantation
Most Read News
09:20a Oil falls below $50 on higher supply outlook, economic worries
07:43a World stocks poised for worst month since January
04:21a NETFLIX : says firm continues to look into entering China
Most recommended articles
06/29 Gold Prices Consolidating Another Bullish Breakout
06/29DJStocks Rise as Brexit Worries Ease
09:56aDJCanada's GDP Rose 0.1% in April
09:55a As We Enter Q3, the Spotlight is Back on the Fed
09:50aDJTURKCELL ILETISIM HIZMETLERI A S : Plans Overseas Expansion to Beat Slowing Sales in Turkey