KHAZANAH Nasional Bhd will be finalising an “appropriate strategic option” for Malaysia Airlines Bhd (MAB) this year in a bid to turn around the ailing flag-carrier.
Khazanah, as MAB’s owner, said in a March 2 statement, it evaluated options to resolve “key issues” facing the airline and said it received nine proposals, “of which four were shortlisted.”
This confirms an earlier report by FocusM that said there were four bidders for MAB: AirAsia Group Bhd (AAGB), Japan Airlines Co Ltd (JAL), Air France-KLM SA and Malindo Airways Sdn Bhd.
Of the four, Khazanah was considering either AAGB or JAL. But the fund was leaning towards AAGB, according to documents sighted.
It is believed that time is of the essence as Khazanah would need an injection of RM21.5 bil from the government to keep MAB afloat until 2025 if the fund fails to find a strategic partner.
“For 2020, Khazanah will continue to work closely with the government and MAB to further review the proposals and finalise a decision on the appropriate strategic option moving forward,” the fund said.
Meanwhile, Khazanah said it “successfully achieved” a resolution on the restructuring of PLUS Malaysia Bhd, the country’s largest toll concessionaire. The restructuring entails an 18% reduction in toll rates on PLUS highways and savings to the government amounting to RM42 bil over a new concession period ending 2058.
Khazanah and the Employees Provident Fund remain PLUS’ shareholders.
“This restructuring is now at the stage of discussions with stakeholders to put in place the necessary amendments to existing agreements,” Khazanah said. – March 2, 2020
