Malaysia Airlines shares up as nationalisation looms
SHARES in Malaysia Airlines jumped more than 10 per cent today in response to plans to nationalise the troubled carrier which is on the verge of collapse after two plane disasters.
In the wake of the disappearance of flight MH370 and the shooting down of flight MH17, its biggest shareholder - Malaysia's sovereign-wealth fund Khazanah - set out plans on Friday to delist the airline.
Khazanah (chaired by Malaysia's prime minister, Najib Razak) offered 27 sen (9c) per share, and in response today the stock - in which trading was suspended on Friday - jumped as high as 26.5 sen.
Shares in the airline had plunged by 40% over the previous nine months, with analysts warning the company could run out of money as early as next year's first quarter.
Khazanah - which already owns more than two-thirds of Malaysia Airlines - is set to announce further details of its delisting plan by the end of the month.
"We see the exercise as a good opportunity for shareholders to exit the stock," Malaysian firm MIDF Investment Research told clients.