It said on Friday it had submitted a request to MAS to undertake a selective capital reduction and repayment exercise (SCR) of 27 sen a share under the restructuring exercise, which would take six to 12 months to complete. Khazanah owns 11.59 billion shares of MAS or 69.3%. Under the exercise, this would entail it forking out RM1.38bil to buy the remaining 5.118 billion shares, which it does not own.
"The proposal will enable minority ordinary shareholders of MAS to receive a capital repayment amount of 27 sen per ordinary share. This represents a 12.5% premium to closing price on Aug 7 2014 and a 29.2% premium to the three-month volume weighted average market price (VWAMP)," Khazanah said.
"Upon successful completion of the proposed SCR, Khazanah will become the sole ordinary shareholder of MAS, which would lead to a de-listing of MAS," said the government investment fund.
However, some quarters said while MAS was biting the bullet in the restructuring exercise, an analyst described it as a "moral hazard" based on the poor financial performance of the airlines. Another analyst said minority shareholders should accept the 27 sen offer.
Meanwhile, MAS said it had received notice of Khazanah’s intentions to take full ownership and de-list the airlines.
"Our board of directors will be deliberating this proposal and an official response from the company will be issued later. During this period, our business operations remains unchanged," it said.
In its first quarter ended March 31, 2014, MAS had posted net losses of RM443.39mil compared with RM278.83mil a year ago. Its revenue was marginally higher at RM3.6bil compared with the RM3.537bil a year ago. Its net asset per share was 21 sen compared with 24 sen a year ago.
Trading in Malaysia Airlines (MAS) was suspended from 9am to 5pm on Friday.