Khazanah Nasional Bhd has announced the delisitng of MAS this morning. However, yesterday at about 10:30 am Reuters broke the story about the impending announcement by Khazanah Nasional Bhd, HERE. It is strange that such matter was leaked out to the press like what had happened to the announcement of the infamous MAS-AirAsia Share Swap, where the story was broke by Malaysian Insider with clinical accuracy of the scheme.
It is sad to note that after several “rescue plans” or “restructuring plans”, “New Business Plan” and etc, MAS is in no better position than what it was before all the “Plans” by the geniuses or corporate gurus.
In 2002, BinaFikir Sdn Bhd (“BinaFikir”) was commissioned to restructure MAS. By chance, at that material time Tan Sri Md Nor Yusuf was the Managing Director of MAS and now chairman of MAS. BinaFikir came up with the “greatest idea” of all times and the name of “Widespread Asset Un-Bundling” (“WAU”) was hatched. Malaysians hailed the great idea of “WAU” by BinaFikir and thought that MAS will fly to its majestic height under “WAU”. Please read HERE,
Basically “WAU” was to make MAS an “asset light airline” so that MAS could fly higher and higher to where it is now!
In 2003, as the MD of MAS, Tan Sri Md Nor Yusuf, sold 70% of the equity of MAS Catering Sdn Bhd was sold to a company controlled by Datuk Hj Ibrahim bin Badawi and at the same time he also signed another back to back catering agreement with the same company worth RM6.25 billion for 25 years. Of course, it was a lope sided agreement, which cost MAS RM250 million annually. No other airline in the world that have signed a 25 years catering agreement.
BinaFikir was incorporated in 2002 and after all the successful projects including “WAU”, in 2008 MAYBANK bought it for RM8 million. If you don’t believe, just ask YB Senator Datuk Wahid Omar, the then CEO of Maybank.
It has been proven that consultancy firm is a lucrative business. No wonder the little napoleons in Khazanah cannot live without consultants!
It was all by chance that in 2002 Tan Sri Nor Mohamed Nor Yakcop was a director of Kazanah Nasional Bhd. He played a major role in GLCs like United Engineer Malasyia (UEM) and MAS, HERE. Around that material time, he was also the extremely powerful Minister of Finance II in the Tun Abdullah’s Administration.
It was by chance that BinaFikir Sdn Bhd was founded by Tan Sri Azman Mokhtar and En Mohamed Rashdan Yusuf aka Danny (Rashdan). When the infamous MAS-AirAsia Share Swap was hatched in August 2011, in HERE.
It was by chance the Tan Sri Azman Mokhtar is the Managing Director of Khaznah Naional Bhd and Rashdan Director of Investment in Khaznah Nasiona Bhd.
It was also by chance that after the infamous MAS-AirAsia Share Swap, Rashdan, who was a Director of Investment, was specially handpicked by the supremo in Khazanah to spearhead the objectives of the infamous MAS-AirAsia Share Swap in MAS, in HERE
Rashdan was trying to save MAS by his so-called cost cutting exercise, which was seen by many as an attempt to stifle the growth of Firefly and/or MAS, in HERE. Rashdan’s agenda under the MAS-AirAsia Share Swap, in HERE.
On 2 May 2012 the infamous MAS-AirAsia Share Swap was reversed and Tan Sri Azman Mokhtar, the MD of Khazanah, said:
Khazanah remains supportive of the compelling logic of proper collaboration between airlines so long as it complies with anti-competition laws, but we also acknowledge the unintended and unfortunate confusion and distraction of the share swap arrangement that has become an impediment to the more important task of turning around the national carrier. As such, the share swap reversal to reinstate the original shareholding positions is done simultaneously with strengthening proper collaboration areas between the competing airlines. In addition, MAS will
be further strengthened with, among others, a fleet renewal programme.”
For full statement of Tan Sri Azman Mokhtar, please read HERE.
In May 2012 Rashdan had to leave MAS in disgrace, HERE.
In January 2012 Malaysian Competition Commission (MYCC) commenced investigation into the so-called collaboration as stated by Khazanah, HERE.
In September 2013, MYCC found the said collaboration between MAS and AirAsia under the said infamous Share Swap has violated the Competition Act 20111 and imposed a fine of RM10 million each against AirAsia and MAS, HERE.
It is hoped that the new “PLAN” by the little napoleon in Kahzanah will not be another “Bina Tak Boleh Fikir” Plan. Whatever PLAN it may be, it must include the termination of the lope sided catering contract with Brahim’s Catering, which is controlled by Datuk Hj Ibrahim Bin Badawi, the brother of Tun Abdullah.
In July 2014 the little napoleon in Khazanah Nasional Bhd have clearly said that there will be no merger between MAS and AirAsia, HERE.
Below is the full text of the statement from Kahzanah on the delisiting of MAS.
Kuala Lumpur, 8 August 2014
Khazanah Proposes to De-list Malaysian Airline System Berhad
We are pleased to announce that Khazanah Nasional Berhad (“Khazanah”) has today submitted a formal request to the Board of Directors of Malaysian Airline System Berhad (“MAS”) to undertake a selective capital reduction and repayment exercise (“Proposed SCR”) of MAS’ ordinary shares. The proposal will enable minority ordinary shareholders of MAS to receive a capital repayment amount of RM0.27 per ordinary share. This represents a 12.5% premium to closing price on 7 August 2014 and a 29.2% premium to the 3-month volume weighted average market price (“VWAMP”). 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.
In June 2014, Khazanah had announced that it was in the midst of undertaking a comprehensive review of MAS, in consultation with the Special Shareholder, the Minister of Finance Incorporated. Khazanah further clarified that subject to the necessary approvals from the relevant authorities, it would announce the proposed restructuring scheme within a period of 6 to 12 months. We reiterate that the proposed restructuring will critically require all parties to work closely together to undertake what will be a complete overhaul of the national carrier on all relevant aspects of, inter alia, the airline’s operations, business model, finances, human capital and regulatory environment. Nothing less will be required in order to revive our national airline to be profitable as a commercial entity and to serve its function as a critical national development entity.
In this regard, today’s proposal for de-listing represents the first stage of the restructuring scheme. Further, Khazanah is in the final stages of completing the overall restructuring proposal, and upon due process and approvals from the relevant authorities, regulators and the Special Shareholder, the Minister of Finance Incorporated, we envisage that additional detailed plans will be announced by the end of this month.