KUALA LUMPUR: Khazanah Nasional Bhd will not make a final decision on the strategic partner for Malaysia Airlines this year.
Economic Affairs Minister Datuk Seri Mohamed Azmin Ali said lead proposals received by the sovereign wealth fund were not “attractive” and, therefore, the final decision was likely to be made only next year.
“We had our board meeting on Dec 17 and the matter was discussed. However, the proposals presented during the meeting were not attractive enough for us (Khazanah) to decide,” he told the New Straits Times after the first plenary session, “Redistribution of Wealth — Shared Prosperity” at the Kuala Lumpur Summit 2019 yesterday.
Azmin said Prime Minister Tun Dr Mahathir Mohamad, who was also Khazanah’s chairman, had agreed with the board that it should consider other options, too, before making a final decision.
“We need to hold more discussions as we have also received proposals from other regional and international players (airlines and non-airlines),” he added.
Khazanah managing director Datuk Shahril Ridza Ridzuan said it was unable to finalise the potential investors at this stage.
“Still a lot of work to be done,” he said yesterday.
NST previously reported that Khazanah had received proposals from more than 20 parties to take over the ailing national carrier.
It also reported that Khazanah had shortlisted four potential candidates.
However, two out of the three foreign airlines reportedly in the shortlist — Qatar Airways and Japan Airlines — have since denied they are eyeing a stake in the national carrier.
Khazanah had in late July hired Morgan Stanley to explore strategic options for Malaysia Airlines in a bid to turn around the national carrier, including a potential stake sale.
Shahril said Khazanah believed in Malaysia Airlines’s intrinsic value and aimed to find the right partner to unlock its value.