STRONG BRAND NAME: MAS may relist on Bursa Malaysia in three years at RM1.50 or RM2, says analyst
ANALYSTS are upbeat on Malaysian Airline System Bhd’ (MAS) chances of being relisted on Bursa Malaysia in three years at a better price.
“It is not impossible for MAS to be refloated on Bursa Malaysia in the next three years at perhaps RM1.50 or RM2. This is because it still has good assets as well as a brand name,” said Affin Hwang Capital head of retail research Datuk Dr Nazri Khan Adam Khan.
“In the coming months, we will see a huge number of job cuts and MAS’ units will be sold off but once this is done, things will be smoother for the carrier,” he said at a seminar on equity investment, here, yesterday.
Nazri said MAS’ biggest hurdle is its trade politics.
“Trade politics is too strong within MAS and I hope that MAS and its trade unions will be able to come to an agreement that will be beneficial for all.”
MAS’ minority shareholders voted in favour of majority shareholder Khazanah Nasional Bhd’s 27 sen per share offer to privatise the loss-making carrier at an extraordinary general meeting (EGM) on Thursday.
Meanwhile, Maybank Investment Bank Research (Maybank IB) said in its note MAS needed fresh capital injection as soon as possible or it would be in a precarious situation, while RHB Research Institute said the privatisation would signal a fresh start.
RHB Research, in noting Khazanah’s RM6 billion restructuring plans that include a capital injection, streamlining the workforce, a review of routes and renegotiation of supply contracts, has maintained its “neutral” call on the stock.
“Our earlier recommendation was ‘neutral’. We had advised minority shareholders to accept the offer as we do not foresee any potential significant turnaround in the foreseeable future for the airline after the MH370 and MH17 incidents.
“This is coupled with the already challenging operating environment of the airline industry,” said the research firm.
With the approval of the EGM, Khazanah can now request to de-list MAS from Bursa Malaysia and Maybank IB said this could happen by year-end.