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Malaysia Airline's shares rise on takeover offer

Published on Aug 11, 2014 10:01 AM
An aircraft of Malaysian Airline System taxis on the tarmac at Kuala Lumpur International Airport in Sepang, outside Kuala Lumpur. -- PHOTO: REUTERS

KUALA LUMPUR (Reuters) - Shares of Malaysia Airline System (MAS) rose as much as 10.4 percent on Monday after state fund Khazanah Nasional said it will offer 27 sen for each share in the company it does not own, amounting to nearly 1.4 billion ringgit (S$545 million) to take the troubled airline private.

MAS shares were trading at 26 sen per share on Monday morning, 8.3 per cent higher than the 24 sen when the stock was suspended on Friday. Its shares topped the most active list on the Malaysian bourse on Monday.

The move to take MAS private by Khazanah, which owns 69.37 per cent of MAS, follows a difficult period for the airline since the disappearance of Flight MH370 on March 8.

The loss-making company's problems deepened on July 17 when its Flight MH17 was shot down over Ukraine, killing all 298 people on board.