The Malaysian Securities Commission has waived a rule requiring a general offer to be made for all outstanding shares in Malaysia Airlines, giving approval to the government's purchase of the 29.09% stake held by Naluri.
A statement from Naluri to the Kuala Lumpur Stock Exchange says the Commission approved the sale on 17 January. Both the Commission and the Foreign Investment Committee cleared a request from the finance ministry to waive the requirement for a general offer on all remaining shares when one shareholder raises ownership of a listed company above one-third.
Once the 1.792 billion ringgit ($472 million)deal is concluded, the finance ministry and "parties acting in concert with it" will own 49.19% of the national airline, says Naluri.
The approval follows a conditional agreement in December between Naluri and the finance ministry to proceed with the sale - a move interpreted by analysts and industry observers as amounting to a bail-out for Tajudin Ramli, chairman of MAS and Naluri and a personal friend of Malaysian prime minister, Mahathir Mohammed.
The agreed 8 ringgit per share buy-back was 117% above the stock's closing price on 19 Dec-ember (when the sale was first agreed) on the Kuala Lumpur Stock Exchange. It equals the price originally paid by Tajudin in 1994.
Shareholder approval for the buy-back is still required, but is assured since the government already controls MAS through investment arms.
MAS has posted losses in each of the past three financial years, and is heading for another loss in the current year ending 31 March. Its debts exceed $2.5 billion.
Source: Flight International
