MAS shareholders approve SCR at ‘emotional’ EGM

PETALING JAYA: After more than five hours at an EGM yesterday, minority shareholders of Malaysian Airline System Bhd (MAS) voted in favour of the proposed selective capital reduction and repayment (SCR) exercise which paves the way for the execution of majority shareholder Khazanah Nasional Bhd's 12-point recovery plan.
In a landslide show of support 71.98% or 668 shareholders from the 928 that were at the EGM, voted in favour of the exercise while 28.02% or 260 shareholders voted against it.
The 668 shareholders held 1.13 billion shares representing 93.98% of shareholding value.
In a filing yesterday, MAS reported a total of 4.83 million spoilt votes. About 1.41% of votes were cast against the special resolution.
Speaking to reporters after the EGM yesterday, MAS chairman Tan Sri Md Nor Yusof said the acceptance of the SCR exercise was a "big relief".
Understandably so for Mohd Nor who chaired the meeting, where board members were barraged by questions from disgruntled minority shareholders.
Despite the obvious victory, it would appear however that support was at best grudgingly given.
Shareholders were visibly emotional during the proceedings of the EGM, with many expressing their hope for "pink slips" to buy shares in the new MAS when it is re-listed post restructuring.
One shareholder of two years who voted for the resolution, Sidek Miko, 55, opined that there is no point questioning the offer price.
"When I bought, it was not so expensive. My average was about 33 sen. But I bought more than 2 million shares so I'm losing also. What can I do? But I pity those who were very upset, they bought at RM8, RM7, I think they are very emotional now," he said.
According to him, many shareholders asked if they will be given the chance to invest again when MAS is re-listed but the board of directors did not respond.
"Hopefully they (Khazanah) will give us the pink form because I love MAS actually. Even my daughter is working here," Sidek said.
Shareholders who bought shares at less than 27 sen also said they would have preferred to hold on and see the company grow in the long-run.
Another shareholder who only wanted to be known as Pillay, said the offer price of 27 sen was too low.
"I myself bought at RM2. Even though they gave rights issue at 23sen, overall we're still making losses. I think based on my opinion MAS should be able to offer a higher price," he said, adding that many shareholders were trying to get a better offer price even at the meeting yesterday.
Shareholders also said that many had used the avenue to raise questions, which included the RM168 million depreciation of A380s bought last year, how MAS funded the ex-gratia of up to RM2,000 per employee post MH370 and MH17 incidents as well as the 20-year full catering contract it signed with Brahim's Holdings Bhd.
Shareholders, who included two who belted out Japanese songs while waiting, also took final digs at the directors and management of MAS team, while waiting for the vote count which lasted almost one and a half hours.
Interestingly MAS shares' fell to a low of 18.5 sen during a recount of the votes, before bouncing back to close at 26.5 sen just half a sen shy of the 27 sen on offer. It was the most actively traded counter yesterday, with some 781.2 million shares changing hands.
Meanwhile Mohd Nor, who was asked to confirm if Air Lingus former CEO Christoph Muller has been offered the job of CEO said there is nothing official at the moment and that the search for a CEO is still on.
Non-independent non-executive director Tan Sri Mohd Irwan Serigar Abdullah, who is also the Finance Ministry's secretary-general of treasury said it is a good thing that the government is making a step towards saving MAS as it is a Malaysian pride.
"In the long run, it will be turned over. It will come back and make profits again, after the restructuring and everything … they (shareholders) know 27 sen is a fair value, so it is better for them to take this 27 sen and we do the restructuring and later come back again for listing," he said.