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Malaysia Airlines to be privatised
Malaysia Airlines will be taken into full private ownership as part of a government plan to turn around the airline in the wake of the MH370 and MH17 disasters. (www.ausbt.com.au) Más...Sort type: [Top] [Newest]
Sounds like it will be NATIONALIZED rather than PRIVATIZED, at least that's what all the news was saying this morning. Government is going from a 69% stake to 100%.
MAS is already a majority government owned enterprise. The 30 odd percent shares that are held by the public that subjects the company to public reporting rules. The twin disasters have had a severe impact on the companies financials, and the public reporting harms the value of the shares in the company.
The government is actually doing the public share owners a solid by taking the company private. They will be paid for their shares. Nationalization usually means the government has taken the equity without fair compensation to the stake holders.
Taking the company private also allows the lenders to rely on the government to pay the bills, which will make borrowing money easier.
If the status quo were allowed to continue, the share price might be driven so low that public owners could be greatly harmed financially.
The government is actually doing the public share owners a solid by taking the company private. They will be paid for their shares. Nationalization usually means the government has taken the equity without fair compensation to the stake holders.
Taking the company private also allows the lenders to rely on the government to pay the bills, which will make borrowing money easier.
If the status quo were allowed to continue, the share price might be driven so low that public owners could be greatly harmed financially.