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Malaysia Airlines Shares to be Suspended Friday 8th

Malaysia Airlines Shares to be Suspended Friday 8th

Old Aug 7, 14, 7:51 pm
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Malaysia Airlines Shares to be Suspended Friday 8th

According to Straights Times/ABC News MH shares will be suspended today:

http://www.straitstimes.com/news/asi...urces-20140807

Malaysia Airlines (MAS) plans to suspend its shares from trading on Friday, two sources familiar with the situation said, likely paving the way for state investor Khazanah Nasional to take the airline private as a first step in a major restructuring.
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Old Aug 7, 14, 8:52 pm
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Confirmed - trading has been halted on the exchange Friday morning (local time) and an announcement is expected today. http://7online.com/news/share-tradin...pended/248157/

Details of the plan (from BBC News) http://www.bbc.com/news/business-28700926

Last edited by Letitride3c; Aug 7, 14 at 10:28 pm
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Old Aug 7, 14, 9:51 pm
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http://www.ausbt.com.au/malaysia-air...ws-articleleft
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Old Aug 7, 14, 11:33 pm
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The Reply by MH:

http://www.malaysiaairlines.com/sg/en/corporate-info/press-room/latest/malaysia-airlines-response-on-khazanah.html
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Old Aug 8, 14, 5:24 am
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Originally Posted by AddictedTraveller View Post
According to Straights Times/ABC News MH shares will be suspended today:

http://www.straitstimes.com/news/asi...urces-20140807

Malaysia Airlines (MAS) plans to suspend its shares from trading on Friday, two sources familiar with the situation said, likely paving the way for state investor Khazanah Nasional to take the airline private as a first step in a major restructuring.
You'll have to forgive my ignorance, but aren't the shares private property? Don't the shareholders get a vote on the disposal of their assets?
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Old Aug 8, 14, 7:34 am
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The details of the transaction vary according to national law but, fundamentally, the relevant question is if the compensation is fair*. This isn't slow-moving M&A activity with bids and counter-bids: the decision is made and the designated government investment fund becomes the owner.

*The government seems to have insulated itself pretty well against charges of a low-ball offer by paying a premium to pre-disaster share price.
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Old Aug 9, 14, 12:31 am
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Originally Posted by Calchas View Post
You'll have to forgive my ignorance, but aren't the shares private property? Don't the shareholders get a vote on the disposal of their assets?
Only read the BBC article, but it seems that Kahaznah owns 69% of the shares. You can vote all you want, but they have the majority.

A halt on trading is usually to protect shareholders/company before a major announcement. The current offer is for 12% above closing price, so to avoid people coming in for a quick buck, they halt trading until the official announcement.

That being said, if they do go private, technically you might be able to keep your shares, they just would not be traded publicly, so you have a much harder time selling them if you wanted to, or getting access to information, etc.
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Old Aug 9, 14, 5:21 am
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Can anyone advise on the fate of the customers?

I have my travel planned with MAS in October with a non-refundable ticket.

What are my options in this case?
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Old Aug 9, 14, 5:51 am
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Originally Posted by Siddharth1 View Post
Can anyone advise on the fate of the customers?

I have my travel planned with MAS in October with a non-refundable ticket.

What are my options in this case?
Wanting to privatize the airline does not mean the airline is shutting down. There will obviously be some restructuring but at this point the airline does not appear to be shutting down.
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Old Aug 9, 14, 6:25 am
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Originally Posted by Siddharth1 View Post
Can anyone advise on the fate of the customers?

I have my travel planned with MAS in October with a non-refundable ticket.

What are my options in this case?
Welcome to FlyerTalk Siddharth1.

Malaysia Airlines has given a short press release: there will be no changes to any flights in the short term because of the proposed take-over—

Originally Posted by Malaysia Airlines
We wish to assure you that all our flights, schedules and reservations will operate as planned.
http://www.malaysiaairlines.com/cont..._to_serve.html

So I hope you enjoy your trip as planned.
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Old Aug 9, 14, 8:12 pm
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a "local" view point

I have been very lucky to travel to Malaysia five or six times a year since 2002 and thus very familiar with the country and the politics.
MH is owned by the government through its investment company and thus provided employment for a lot of Malay people and many appointments were made not based on merit. Also you would think that there are no Indians or Chinese in the country if you read news about MH or anything else in Malaysia. This airline has failed to make any profit and the government has poured in BILLIONS of dollars over the years. The entry of Air Asia a very profitable and very well run budget airline made things more difficult for MH, and also the fact that it was not run by a Malay but an Indian who surrounded himself with talented people regardless of the race.
The general feeling is that the upper management will have to be replaced and that the airlines structured in a way to take advantage of only profitable routes such as Meccah trips or subcontinental trips or some asian routes.
The educated guess in KL is that MH as we knew it would be gone but a slimmer version, perhaps with some Gulf Money might arise.
I wrote this after a recent trip to Malaysia
http://www.medicoanthropologist.blog...-may-fold.html
Hope I didn't go too far off the topic!
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