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
10:57p FEDERAL REALTY INVESTMENT TRUST : Announces Second Quarter 2017 Earnings Release Date and Conference Call Information
10:57p Lundin Law PC Announces an Investigation of Arconic Inc. and Advises Investors with Losses to Contact the Firm
10:57p Enbridge Gas Distribution Rates Change July 1
10:56p Oil up almost 2 percent on weaker dollar, short-covering
10:56p Oil up almost 2 percent on weaker dollar, short-covering
10:56p WESTERN DIGITAL : Announces Industry’s First 96-Layer 3D NAND Technology
10:55p Oil up almost 2 percent on weaker dollar, short-covering
10:55p TEARLAB CORPORATION (NASDAQ : TEAR) Files An 8-K Termination of a Material Definitive Agreement
10:55p GLOBAL MEDICAL REIT INC. (NYSE : GMRE) Files An 8-K Regulation FD Disclosure
10:54p GLOBAL MEDICAL REIT INC. : Regulation FD Disclosure, Financial Statements and Exhibits (form 8-K)
Latest news
Advertisement
Hot News 
-8.85%ALLIED IRISH BANKS : Ireland could sell more AIB shares after oversubscribed IPO
-1.41%CROWN RESORTS : Casino Executive Sentenced -- WSJ
-7.99%Avis Gets Waymo Driverless Car Deal -- WSJ
5.50%Britain's Travis Perkins names ex-ARM man as chairman
-3.33%Auto supplier Schaeffler cuts profit guidance on steel costs, electric shift
Most Read News
02:48aDJWARREN BUFFETT : Buffett Backs Store REIT -- WSJ
03:38p Wall Street ends higher on technology, energy boost
12:41a CARLOS GHOSN : Nissan says CEO Ghosn's salary rose 2.5 percent last year
02:48aDJDANIEL LOEB : Nestlé and L'Oréal Have Long History, Too Long for Loeb -- WSJ
02:28aDJSTUART CHAMBERS : Travis Perkins Appoints Stuart Chambers as Chairman
Most recommended articles
04:56p Oil up almost 2 percent on weaker dollar, short-covering
04:39p BlackBerry seeks sales force to match software focus
04:17pDJNEWS HIGHLIGHTS : Top Energy News of the Day
04:15p TSX falls as technology, gold mining shares retreat
03:47p Facebook hits two billion-user mark, doubling in size since 2012