Malaysia plans overhaul of national airline
Source: AP-Excite
By EILEEN NG
KUALA LUMPUR, Malaysia (AP) — Malaysia's state investment company said Friday it plans to make Malaysia Airlines fully government owned, removing it from the country's stock exchange before carrying out an overhaul of the carrier that is reeling from double disasters.
Khazanah Nasional, which owns 69 percent of Malaysia Airlines, said it has proposed to the carrier's board that it buy out minority shareholders at 27 sen (8 cents) a share, which is 29 percent higher than the airline's average share price over the previous three months. The takeover would cost 1.38 billion ringgit ($429 million).
Malaysia Airlines has been hit by two major disasters this year, which added to its longstanding financial woes.
In March, Flight 370 from Kuala Lumpur to Beijing disappeared with 239 people on board after flying far of course. The plane has still not been found, with a search in the southern Indian Ocean underway. In July, 298 people were killed when Flight 17 was shot down over Ukraine. It was heading to Kuala Lumpur from Amsterdam and was shot out of the sky over an area of eastern Ukraine controlled by pro-Russian separatists.
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FILE - In this April 8, 2014, file photo a school utility worker mops a mural depicting the missing Malaysia Airlines Flight 370 at the Benigno "Ninoy" Aquino High School campus at Makati city east of Manila, Philippines. Malaysia's state investment company said Friday, Aug. 8, 2014, it plans to remove struggling Malaysia Airlines from the stock exchange, making it fully state-owned before a far-reaching overhaul of its business.(AP Photo/Bullit Marquez, File)
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