Malaysian government to bail out Naluri via MAS stake sale

Naluri is expected to exit MAS at cost, courtesy of the Malaysian government, which would then sell part of its holding to Qantas.

If latest reports prove correct, the Malaysian government is poised to buy Naluri's 29% stake in Malaysian Airline Systems MAS at Naluri's 1994 cost price of M$1.67 billion $440 million - or M$8 a share - and then sell a 20% interest to Qantas. If such a deal materializes, Naluri's six years of mismanagement of the Malaysian flag-carrier will go largely unpunished.

The exit strategy of the day seems to resemble a bit of a bailout, matched as it is to Naluri's in price, says Tim Ross, analyst at UBS Warburg. The Malaysian government rewards Tajudin Ramli controlling shareholder of Naluri and chairman of MAS for national service, removing...

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