Trading volume has increased but it seems like market is still not confident. After all, the share issuance has not been done yet. I do think that the market expects the share price to fall further after the issuance of additional shares.
However, it is important to bear in mind that the main shareholder Khazanah, will most likely hold on tight to their shares. Thus, selling should be only by retailers.
So, taking a little punt on MAS may not be such a bad idea.
We should also not discount the possibility of privatization of MAS.
Why?
MAS has subsidiaries that could potentially be gold mine (Firefly, Freight Business, Aircraft Maintenance). With some reorganization, and re-listing its businesses, it can potentially bring in more money than to keep MAS listed. Debt can be reorganized, and proceeds from listing of its profitable businesses, can help uplift is financial condition.
Airline business is very much dependent on debt, debt, debt, and the need to continuously grow revenue and profits. If profits cannot stay ahead of repayments, then the company is screwed.
MAS could potentially be operated as a smaller entity, after having spun-off its other more profitable businesses. Operating MAS as a lean machine can potentially help revive the brand, and keep costs in check, while maximizing profits.
So, who's taking it private? Anyone?
No comments:
Post a Comment