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Malaysia Airlines climbs in active trade

Publication Date : 11-08-2014

 

Malaysia Airlines (MAS) shares rose in very active trade on Monday when it resumed trading after a one-day halt where its major shareholder proposed to delist it at 27 sen a share.

At 9.06am, it was trading at 26 sen. There were 93.96 million shares done at prices ranging from 25.5 sen to 26.5 sen.

The FBM KLCI rose 4.07 points to 1,843.94. Turnover was 290.83 million shares valued at 81.94 million ringgit (US$25.62 million). There were 259 gainers, 56 losers and 154 counters unchanged.

Last Friday, Alliance DBS Research said minority shareholders of the ailing national carrier should accept Khazanah Nasional Bhd's selective capital repayment (SCR) of 27 sen a share under the restrucuturing exercise, analysts said.

It had said the SCR would be a timely exit opportunity for the minority investors, particularly as earnings momentum remains negative with an imminent cash call expected.

"The offer price of 27 sen implies a 4.1 times FY14F price-to-book value (excluding the perpetual Sukuk) and 21 times FY14F EV/EBITDAR (enterprise value/ earnings before interest, taxes, depreciation, amortisation and restructuring or rent costs).

 

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