Malaysia Airlines denies imminent share issue

Published: 13/11/06

Kuala Lumpur based national airline Malaysia Airlines has denied recent reports that it plans to raise capital by issuing more shares next year. The airlines, which is currently embroiled in a large cost-cutting exercise needs to raise additional cash to fund a number of acquisitions to help it compete more effectively against a number of low cost rivals across the Far East.

Idris Jala, the head of the state owned airline, which offers cheap flights to Kuala Lumpur was quoted as saying that shareholders had given the go ahead for the issue of stock early next year, but this was later denied by a spokesman, who played down the possibility, and instead claimed that Jala had been referring to an earlier release of redeemable preference shares..

The spokesman went on to claim that the airline had yet to rule out any activities to possibly raise additional funds in the near future.

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