Shareholders back MH buyout

KUALA LUMPUR Minority shareholders of Malaysia Airlines voted Thursday in favour of a USD420 million bid by its majority owner, state fund Khazanah Nasional, to privatise the loss-making carrier which suffered two air tragedies this year.
The approval moves Khazanah Nasional, the state investment holding arm of the Malaysian government, which owns a 70% stake in the carrier, closer to implementing its restructuring plans to return the company to profitability.
“Our shareholders’ approval represents a first, but major hurdle crossed, and there is much more to be done,” group CEO Ahmad Jauhari Yahya said.
inside no 2Two months ago, Khazanah Nasional pledged USD1.9 billion to revive the airline within three years.
Its ambitious plan also includes slashing 6,000 jobs and trimming routes in a bid to stave off bankruptcy.
MAS has bled money for years, with analysts blaming poor management and a failure to keep up with industry competition.
But the outflow has become a torrent due to this year’s twin disasters.
MH370 mysteriously vanished 8 March with 239 passengers and crew aboard. MH17 went down 18 July —believed hit by a surface-to-air missile — in rebellion-torn eastern Ukraine, killing all 298 on the plane.
MAS previously had a solid safety record.
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