MAS Minority Shareholders Approve SCR In First Step Of Revamp
KUALA LUMPUR, Nov 7 – Minority shareholders of Malaysian Airline System Bhd (MAS) today approved a proposal for a selective capital reduction (SCR) and repayment exercise of the company pursuant to Sections 60 and 64 of the Companies Act, 1965. The proposed SCR was made by Khazanah Nasional Bhd, the majority shareholder of MAS, in its letter to the company on August 8, 2014, MAS said in a statement..
Ordinary minority shareholders will receive a capital repayment amount of RM0.27 per share which represents a premium over the five-day to six month volume weighted average share price of 14.9 cent to 22.8 cent respectively. The approval from the minority shareholders to accept the SCR was made at an Extraordinary General Meeting (EGM) held at MAS Academy in Kelana Jaya, Petaling Jaya.
Barring any unforeseen circumstances, the SCR is targeted to be completed by December 2014 at which point MAS will be delisted from the Main Market of Bursa Malaysia Securities Bhd. In the meantime, there will be no interruption to MAS operations. “The company will continue to fly, honour existing reservations and plan future travel,” it added.
MAS said the proposed SCR offered the minority shareholders the opportunity to exit at a premium to the prevailing price of MAS shares, so as not to be subjected to associated risks and uncertainties relating to the execution of the proposed restructuring which is currently being planned by a dedicated MAS management team.
“Today’s decision by minority shareholders in support of the proposed SCR is premised on the view that the offer price is fair and reasonable as stated by the independent advisor, AmInvestment Bank Bhd, in its independent advice letter dated October 15, 2014, as well as the recommendation of the independent directors of MAS to vote in favour of the Proposed SCR,” said Group Chief Executive Officer, Ahmad Jauhari Yahya.
“Our shareholders’ approval represents a first, but major, hurdle crossed, and there is much more to be done. We hope to complete the SCR process before the end of the year,” he added. The proposed SCR will become unconditional upon grant of the sealed order from the High Court of Malaya and the filing of the same with the Companies Commission of Malaysia.
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