Malaysian sovereign wealth fund Khazanah Nasional has shortlisted four bidders for the privatisation of Malaysia Airlines (MH, Kuala Lumpur International), Minister of Economic Affairs Datuk Seri Mohamed Azmin Ali said during a hearing in the lower house of the parliament (Dewan Rakyat).
"Khazanah and Malaysia Aviation Group Bhd (MAG) had invited 20 potential investors in August 2019 to be Malaysia Airlines' strategic partner. Through this process, Khazanah and MAG has in September shortlisted four strategic investors to be further evaluated. Our focus is on proposals with prudent financial management and operation synergy in Malaysia Airlines," Mohamed Azmin was quoted as saying by The Edge Markets.
He further said that final proposals are expected by the fund in November 2019 with a decision in late 2019 or early 2020. For the time being, the carrier is continuing with internal restructuring.
Mohamed Azmin declined to name any of the four bidders.
He elaborated that while the final shareholding structure has yet to be determined, the government was looking at retaining a significant share in the carrier. Mohamed Azmin did not clarify whether this would amount to a golden share with veto power. Currently, Malaysia Airlines is wholly-owned by Khazanah Nasional.
"The government will ensure that through Khazanah, we will still have an important stake and influence in the new structure, although we have not finalised the new structure. There are strategic investors [which] want to control majority of shares, some think that Khazanah should remain majority shareholder," Mohamed Azmin said.
Khazanah Nasional and the Malaysian government launched the divestment process earlier this year, unwilling to further support the loss-making flag carrier.
A group of investors fronted by the former non-executive chairman of AirAsia Group, Pahamin Abdul Rajab, has previously confirmed its willingness to submit a bid. Qatar Airways Group was also linked to a potential investment in Malaysia Airlines. AirAsia Group itself repeatedly denied interest in a merger with the full-service flag carrier.
