Tuesday, December 25, 2012

Malaysian Airline System Bhd














Malaysian Airline System Berhad (MAS) actually is struggling to get back in black in their quarterly financial report, its share price is sloping downward especially after the capital restructuring proposal as below,

(I) PROPOSED CAPITAL RESTRUCTURING COMPRISING:

 PROPOSED REDUCTION OF RM0.90 OF THE PAR VALUE OF EACH EXISTING ORDINARY SHARE OF RM1.00 EACH IN MAS PURSUANT TO SECTION 64 OF THE COMPANIES ACT 1965 (“ACT”) (“PROPOSED PAR VALUE REDUCTION”); AND

 PROPOSED REDUCTION OF THE SHARE PREMIUM ACCOUNT OF MAS PURSUANT TO SECTIONS 64 AND 60 OF THE ACT (“PROPOSED SHARE PREMIUM ACCOUNT REDUCTION’),

(“PROPOSED CAPITAL RESTRUCTURING”);

(II) PROPOSED RENOUNCEABLE RIGHTS ISSUE OF NEW ORDINARY SHARES OF RM0.10 EACH IN MAS (“SHARE(S)”) TO RAISE GROSS PROCEEDS OF UP TO RM3,100 MILLION AFTER THE PROPOSED CAPITAL RESTRUCTURING (“PROPOSED RIGHTS ISSUE”); AND

(III) PROPOSED AMENDMENT TO THE MEMORANDUM AND ARTICLES OF ASSOCIATION OF MAS (“M&A”) TO FACILITATE THE IMPLEMENTATION OF THE PROPOSED PAR VALUE REDUCTION (“PROPOSED AMENDMENT”)

The full announcement can be found in Bursa Malaysia website, since MAS consider trading at its history low level, do an investor should consider entering this counter if it go some more lower?

It is no doubt any further sliding of the stock price will provide trading opportunity for the technical rebound, but for the peace of mind, one should only consider this counter when they feel it can start generating profit consistently, it is quite uneasy to just received quarterly loss report for your share that you are holding.

Graph Source: Chart Nexus    

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