Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

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 : [email protected]
Phone : +603 7840 4485
Mobile : +6019 222 4952

distributed by
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news
Date Title
04:00a MICROSOFT : BETT Middle East 2017 kicks off in Abu-Dhabi
03:58a DGAP-WPÜG : Übernahmeangebot;
03:58a CDLHT : Announcement on the (1) Unaudited Financial Statements of CDL Hospitality Trusts, H-REIT and its Subsidiaries and HBT and its Subsidiaries for the First Quarter ended 31 March 2017 and related announcements; (2) Changes to the Composition of the Boards and Audit and Risk Committees (“ARC”); and (3) Cessation of Independent Non-Executive Director who is Lead Independent Director and Chairman of the ARC
03:58a TOX FREE : Dispatch of Notice of General Meeting
03:58a PORTICO INTERNATIONAL : Notice of Annual General Meeting
03:58a KPJ HEALTHCARE BHD : Additional Listing Announcement
03:58a VARISCAN MINES : Form 604
03:58a DGAP-WPÜG : Takeover Offer;
03:58a JAIF JAPAN ATOMIC INDUSTRIAL FORUM : Japan’s Dependence on Thermal Power Remains High Despite Restart of NPPs
03:58a EURONET WORLDWIDE : Statement on MoneyGram
Latest news
Advertisement
Hot News 
11.09%LVMH's Arnault swoops to take full control of Christian Dior
-10.77%EXPRESS SCRIPTS : Faces a Future Without Its Biggest Customer
19.56%European shares firm as earnings, M&A back in play
5.57%MCDONALD : All-Day Breakfast Still a Boon
7.86%AHEAD OF THE TAPE : Caterpillar Rally Has Heavy Lift To Endure -- WSJ
Most Read News
09:21p Softwood lumber dispute fires up trade fight between Canada, U.S.
06:29p AT&T revenue misses estimates as customers keep phones longer
09:11p TOSHIBA : to replace auditor PwC over differences - Nikkei
08:03p BLACKROCK : Asia investors boost use of unorthodox data sources in battle to beat benchmarks
09:33p AUSTAL : Commences Construction Of 109 Metre High Speed Ferry For Molslinien Of Denmark
Most recommended articles
04/21 TWENTY FIRST CENTURY FOX : Government extends period for regulators to report on Sky-Fox merger
09:41p GOLDMAN SACHS : Trump tax plan will sharply slash corporate tax rates
09:29p LG DISPLAY : says 2017 capex could be higher than planned
09:21p Softwood lumber dispute fires up trade fight between Canada, U.S.
09:16pDJNEWS HIGHLIGHTS : Top Global Markets News of the Day