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Web500sjc
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MH To Suspend Trading For Announcement

Thu Aug 07, 2014 8:38 pm

http://www.cbc.ca/news/business/mala...suspend-trading-friday-report-says

MH is going to suspend trading on Friday for a corporate announcement- any idea ( name change, privatization, full government controll?)
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atcsundevil
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RE: MH To Suspend Trading For Announcement

Thu Aug 07, 2014 9:06 pm

Quoting Web500sjc (Thread starter):
name change, privatization, full government control

Could be any of the above. If I had to pick one, my guess would be the former -- a change in name and branding has been rumored since the day of the MH17 shoot down and acknowledged by the company. As for the change in ownership, I think things were moving that way before the crashes, but were simply accelerated because of them. Their poor financial results weren't helped by their ownership situation and were then exacerbated by the two accidents, and the government had seemingly made it clear that it intended to offload some or all of its shares to limit their damage and to potentially save the company. Now the need to do that has become more dire.

In any case, it's certainly going to be a big announcement...they don't just suspend trading for any average press conference.
 
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LAXintl
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RE: MH To Suspend Trading For Announcement

Thu Aug 07, 2014 9:12 pm

Change in name/branding is not an overnight thing. That is a long term endevour.

Something like that comes towards the end of corporate overhaul, and only when you are ready to relaunch the revitalized enterprise.
From the desert to the sea, to all of Southern California
 
a380787
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RE: MH To Suspend Trading For Announcement

Thu Aug 07, 2014 9:19 pm

definitely major change of ownership and structuring. rebranding alone doesn't require halting of market trade.
 
mwh787
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RE: MH To Suspend Trading For Announcement

Fri Aug 08, 2014 12:33 am

Quoting a380787 (Reply 3):

definitely major change of ownership and structuring. rebranding alone doesn't require halting of market trade.

   I totally agree
 
tyler81190
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RE: MH To Suspend Trading For Announcement

Fri Aug 08, 2014 1:34 am

Quoting a380787 (Reply 3):
definitely major change of ownership and structuring. rebranding alone doesn't require halting of market trade.
Quoting LAXintl (Reply 2):

Change in name/branding is not an overnight thing. That is a long term endevour.

Something like that comes towards the end of corporate overhaul, and only when you are ready to relaunch the revitalized enterprise.

Whatever it is, it's going to be big. Though I am sure we will all be disappointed in the outcome, as new branding these days is all "euro-white" with a bland logo/livery.

If it is indeed a bankruptcy or ownership change then there is an even bigger reason to suspend trading. I just wonder what is going on!!
 
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BreninTW
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RE: MH To Suspend Trading For Announcement

Fri Aug 08, 2014 2:02 am

CBC is reporting that, according to 'unnamed sources' quoted by Reuters, the suspension is a prelude to de-listing the airline.

Source.
 
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mercure1
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RE: MH To Suspend Trading For Announcement

Fri Aug 08, 2014 2:09 am

In my opinion its simply nothing more than government to take airline off market. We've had thread about their intentions to do so.

I also agree a rebrand does not come quick and would be rolled out as climax ending of significant overhaul.
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AIRWALK
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RE: MH To Suspend Trading For Announcement

Fri Aug 08, 2014 2:10 am

It has to be a rather major announcement. Halting trading is a big move and they are aware of the repercussions of it. Any stockholder in MH right now is thinking they would dump if they got the chance. By halting trading itself, MH can be driven to the ground, even though there is no basis in it. Therefore they wouldn't halt unless they absolutely had to, giving the market enough time to become rational again.
I'm sure this thread will take off soon
 
D L X
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RE: MH To Suspend Trading For Announcement

Fri Aug 08, 2014 2:20 am

I'll throw out a less likely one:

Merger with SIA?

/
/
/
 
n800nn
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RE: MH To Suspend Trading For Announcement

Fri Aug 08, 2014 2:35 am

order to replace 777-200er
 
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BreninTW
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RE: MH To Suspend Trading For Announcement

Fri Aug 08, 2014 2:40 am

And ... it's official. MH will be de-listed.

Source.

Edit: The PDF link above is not working. However, on this page the headline appears "Khazanah Proposes to De-list Malaysian Airline System Berhad." Khazanah is the Malaysian Government investment body and holds 69% ownership of MH.

[Edited 2014-08-07 19:42:48]
 
Qazar
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RE: MH To Suspend Trading For Announcement

Fri Aug 08, 2014 2:49 am

Quoting BreninTW (Reply 11):
And ... it's official. MH will be de-listed.

… Which means, back in Gov't control… It was expected!!!
 
AirCalSNA
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RE: MH To Suspend Trading For Announcement

Fri Aug 08, 2014 3:10 am

MH is going private and its shares will be de-listed due to financial problems and the two disasters this year.

http://www.nytimes.com/reuters/2014/...pocket-region&WT.nav=pocket-region
 
penguins
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RE: MH To Suspend Trading For Announcement

Fri Aug 08, 2014 5:28 am

Not a big surprise. Sad, because they had no control over it, but not a surprise. I think something like this was bound to happen inevitably because of their poor financials before the crashes. The crashes just expedited that.
 
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zeke
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RE: MH To Suspend Trading For Announcement

Fri Aug 08, 2014 5:35 am

The market cap was only around a billion dollars
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AA737-823
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RE: MH To Suspend Trading For Announcement

Fri Aug 08, 2014 6:03 am

Quoting zeke (Reply 15):

The market cap was only around a billion dollars

That doesn't matter one bit, to the people affected by these tragedies and ensuing difficult decisions.
 
A388CC
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RE: MH To Suspend Trading For Announcement

Fri Aug 08, 2014 6:09 am

'MH notice of Khazanah’s intentions to take full ownership and delist Malaysia 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.'
from their website this morning.
 
F9Animal
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RE: MH To Suspend Trading For Announcement

Fri Aug 08, 2014 6:40 am

MH really had no choice but to go this route. I really feel bad for the employees of this airline. I hope MH is able to turn things around, and get healthy.
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KarelXWB
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RE: MH To Suspend Trading For Announcement

Fri Aug 08, 2014 7:39 am

Malaysia Airlines will be taken into full private ownership as part of a plan to turn the airline around in the wake of the MH370 and MH17 disasters.

Malaysia Airlines to be privatised
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SKAirbus
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RE: MH To Suspend Trading For Announcement

Fri Aug 08, 2014 8:15 am

Quoting KarelXWB (Reply 19):

Malaysia Airlines will be taken into full private ownership as part of a plan to turn the airline around in the wake of the MH370 and MH17 disasters.

Being bought by a state owned company is hardly privatisation...
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airpearl
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RE: MH To Suspend Trading For Announcement

Fri Aug 08, 2014 8:27 am

Quoting SKAirbus (Reply 20):
Being bought by a state owned company is hardly privatisation...

Yes, it's nationalization not privatization. Ironically however, this change will mean the company is no longer subject to public scrutiny, which scares me, as a Malaysian taxpayer, not a little.

[Edited 2014-08-08 01:28:47]
 
Liverpoola380
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RE: MH To Suspend Trading For Announcement

Fri Aug 08, 2014 10:06 am

This is being reported by the BBC also.

http://www.bbc.co.uk/news/business-28700926
 
jumpjets
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RE: MH To Suspend Trading For Announcement

Fri Aug 08, 2014 10:39 am

Quoting KarelXWB (Reply 19):
Yes, it's nationalization not privatization. Ironically however, this change will mean the company is no longer subject to public scrutiny, which scares me, as a Malaysian taxpayer, not a little.

I am not a fan of nationalisation but if its a short/medium term measure it could be just what MH needs - it takes away the pressure to please the open market while the company gets its house back in order. Hopefully the lack of pressure from financial markets with help MH to take stock and regroup that will lead to the airline emerging stronger and leaner.
 
dtw2hyd
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RE: MH To Suspend Trading For Announcement

Fri Aug 08, 2014 10:51 am

WSJ is shows stock closed at 24 cents (USD 0.24, ie., MYR 0.77).

If Khazanah Nasional paid 8 cents (USD 0.084 MYR 0.27),

Isn't it too low or did I get the math wrong.
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speedbored
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RE: MH To Suspend Trading For Announcement

Fri Aug 08, 2014 11:11 am

Quoting dtw2hyd (Reply 24):
WSJ is shows stock closed at 24 cents (USD 0.24, ie., MYR 0.77).

If Khazanah Nasional paid 8 cents (USD 0.084 MYR 0.27),

Isn't it too low or did I get the math wrong.

The BBC are reporting that Khazanah are paying a 12.5% premium so it seems that the stock closed at MYR 0.24, not USD 0.24.
 
airpearl
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RE: MH To Suspend Trading For Announcement

Fri Aug 08, 2014 11:14 am

Quoting jumpjets (Reply 23):
I am not a fan of nationalisation but if its a short/medium term measure it could be just what MH needs - it takes away the pressure to please the open market while the company gets its house back in order. Hopefully the lack of pressure from financial markets with help MH to take stock and regroup that will lead to the airline emerging stronger and leaner.

In theory, you're right. But MH has been down this road before. The airline was nationalized before, "restructured", then privatized to a crony businessman who committed the airline to contracts that favour his private companies. The airline bled and was on the verge of collapse before the government bought back his stake with public money. If the grapevine in Malaysia is to be believed, I fear we could be set for another such vicious circle.

Quoting dtw2hyd (Reply 24):
WSJ is shows stock closed at 24 cents (USD 0.24, ie., MYR 0.77).

If Khazanah Nasional paid 8 cents (USD 0.084 MYR 0.27),

Isn't it too low or did I get the math wrong.

The stock was trading at MYR0.24, not USD0.24. So the offer of MYR0.27 is a 12.5% premium.
 
N1120A
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RE: MH To Suspend Trading For Announcement

Fri Aug 08, 2014 2:18 pm

Despite the obvious issues that happen with nationalization, I don't think they really had a choice here. MH was in financial straits to start with, and got about as unlucky as it gets. When the US airlines were rocked by 9/11, the US government poured billions into them. The Malaysian government is basically doing the same thing - only for less cost and for something they already controlled a majority of. Even if they are serious about eventual full privatization, this was a step they had to take.
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dtw2hyd
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RE: MH To Suspend Trading For Announcement

Fri Aug 08, 2014 2:33 pm

Quoting N1120A (Reply 27):

I have slightly different POV. This is just putting lipstick on a ... There won't be any structural changes to make it better, because there is no need to. MH can go on with their daily routine.

Its a masterful political move. It is now 100% state owned, yet private owned. No need to disclose anything. It is 100% government controlled, yet government's hands are clean. Government can continue to infuse tax payer funds indirectly.
All posts are just opinions.
 
MD80Nut
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RE: MH To Suspend Trading For Announcement

Fri Aug 08, 2014 7:06 pm

Both nationalization and privatization have the exact same risk of corruption. The fact is a government official is no less or more likely to be corrupt than a corporate executive. Or even a religious figure. It's humans, don't cha know?

I sure hope the employees of the airline who probably just want to work for a great airline representing their country can continue to do so, what ever happens. I'm sure the two disasters have been a great strain on them.

Cheers, Ralph
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