Comprehensive M&A data with integrated detailed company information

Khazanah hires Morgan Stanley for MAB review: Bloomberg
Posted on Tuesday, 23 July 2019 13:04
Morgan Stanley is advising Khazanah Nasional on all manner of options for Malaysia Airlines (MAB), including a sale of a stake and evaluating four different proposals already tabled by local investors for the loss-making flag carrier, Bloomberg reported. Sources with knowledge of the matter told the news provider that if alternatives fail to make the grade, the worst-case scenario would be closing down the company in a bid to save money. First, however, the government is actively looking at how to turn around the airline that was taken private in 2014 following two international incidents, namely a plane vanishing over the Indian Ocean and another being shot down over the Ukraine. Khazanah wants to complete a deal by the end of the year, though discussions are ongoing, and the timeframe may change, one of the sources told Bloomberg. When contacted by the news provider, a spokesperson said the sovereign wealth fund, which is sole owner of the carrier, is weighing how best to improve performance. MAB’s revenue was up 2.0 per cent in the quarter ended 31st March 2019, when compared with Q1 2018, and load factor was unchanged at 75.2 per cent as the airline matched an increase in capacity with market demand. However, chief executive Izham Ismail gave a warning: “The competitive environment is expected to continue to tighten in 2019, driven by overcapacity in the region as well as domestic. “This is largely driven by the price-sensitive leisure market which directly impacts yield. While the airline has hedged against fuel and forex, we will continue to be impacted by such external volatilities including the ongoing trade war between the US and China.” Zephyr, the M&A database published by Bureau van Dijk, shows 199 announced deals have targeted the global air transportation so far this calendar year, the largest of which is the buyout of WestJet by Onex for USD 3.73 billion. © Zephus Ltd