MH to sell HQ for RM130M

[Seth K 3]

Malaysia Airlines Agrees to Sell Office Headquarters for Cash

 

 

KUALA LUMPUR, Malaysia (AP) -- Malaysia Airlines said Wednesday it has agreed to sell its office headquarters for 130 million ringgit (US$36 million; euro29 million) to raise cash and bolster the loss-stricken carrier's finances.

 

The 35-story building, known as Bangunan MAS, in Kuala Lumpur, Malaysia's largest city, will be sold to state-owned fund management firm Permodalan Nasional Bhd., Malaysia Airline System Bhd. said in a statement to the stock exchange.

 

The net book value of the airline and ticketing business headquarters was 81.2 million ringgit (US$23 million; euro18 million) at the end of December 2005, the statement said.

 

On completion of the sale, Malaysia Airlines said it expects to realize a gain of 46 million ringgit (US$12.8 million; euro10.2 million). The carrier has said it needs some 4 billion ringgit (US$1.1 billion; euro875 million) cash to restructure and return the company to profitability.

 

The airline reported a loss of 1.3 billion ringgit (US$362 million; euro288 million) for its financial year ended December 2005 and wants to turn around in 2007 with a projected 50 million ringgit (US$14 million; euro11 million) net profit.

 

 

Go out there, and snap the MAS building before it gone for good

Edited June 28, 2006 by Seth K

[Edwin P K 0]

Was there last week - it's dirty (exterior), old, and tacky! It's a really really old building huh? I didn't know the building was there even though I always pass Jalan Sultan Ismail

[S V Choong 4]

Went to the building 2 years ago and looks like it is still a piece of 80s architectural style. It looks really tired and in need of renovation.

 

State owned airline selling it to state owned enterprise huh? I guess Malaysia is getting good at those state owned deals!

[I. Wong 0]

Sad to know this. I used to go there when I was in KL to get hardcopy of MAS timetable. Like the B744 model in the ticketing office on the ground floor.

Edited June 28, 2006 by I. Wong

[Walter Sim 1]

yeah, i did saw that I.Wong! Would love to bring it home.

 

 

[Gavin Andrew David 6]

Lets buy

[Edwin P K 0]

Lets buy

 

They might agree to it, since they are desperate for cash...

[BC Tam 2]

They might agree to it, since they are desperate for cash...

In that case, maybe go grab the few A300 models at KK's Karamunsing ticketing office - excellent antique value to be realised !

[LW Wong 0]

In my opinion the building is the symbol of the company's success and strength. Thankfully I had the opportunity to go there and bought my hibiscus livery model before it is sold. It's a great place to purchase MAS aircraft models since the building is their HQ. In July the GB will be relocated to Subang and I suppose going to an off city location will not be a pleasant experience as going to the HQ in the golden triangle of KL.

[Tamizi Hj Tamby 1]

In my opinion the building is the symbol of the company's success and strength. Thankfully I had the opportunity to go there and bought my hibiscus livery model before it is sold. It's a great place to purchase MAS aircraft models since the building is their HQ. In July the GB will be relocated to Subang and I suppose going to an off city location will not be a pleasant experience as going to the HQ in the golden triangle of KL.

 

I'm agree with your opinion above,LWwong.Too bad to see MH had to sell their HQ..

[BC Tam 2]

..... the GB will be relocated to Subang and I suppose going to an off city location will not be a pleasant experience as going to the HQ in the golden triangle of KL.

You're kidding right ?!

Edited June 29, 2006 by BC Tam

[Edwin P K 0]

 

 

[Tony 1]

In July the GB will be relocated to Subang and I suppose going to an off city location will not be a pleasant experience as going to the HQ in the golden triangle of KL.

I'd rather travel to Subang than to KL CBD, given the traffic and distance from my place.

[KK Lee 5]

 

Nothing more than another WAU exercise.

 

 

[Sandeep G 1]

MYR130 Million.... this money will be swallowed up VERY fast but doesn't matter.. sentimentalism is for.. well.. I can't remember the name of the other group of people I was thinking of... so ermm.. sentimentalists.. haha

 

The restructuring and turnaround of MAS is the most important step that needs to be taken now and Subang is just as nice a place.. albeit not very corporate... We'll see how they go and what happens in the future!

 

WAU or non-WAU.. cash-flow is the major area of concern and if such sacrifices have to be made with regards to entity assets, then so be it.

[Andrew Yong 0]

At least , MAS have property to sell for increase the cash flow. Like VARIG going "Finish".

[Tony 1]

Nothing more than another WAU exercise.

Yup, one which makes everyone go WOW

[HSLim 0]

Wait a minute... I thought MAS had already sold the building to PMB under WAU in 2001 or 2002? So now is it really PMB selling the building to PNB to raise cash for MAS?

 

What next? PMB selling aircraft to raise cash for MAS?

 

Double WAU! In honour of the government and people of Malaysia, MAS might want to put an extra wau decal on the aircraft tails.

By the time the third WAU takes place, they should adopt this wauwauwau (multiple wau) design:

http://www.cardatabase.net/modifiedairline...php?id=00000430

 

 

[Tony 1]

Lim,

 

Nice colour scheme - one wau for one business downturn.

 

They are indeed planning to dispose the 744s to generate cashflow for the airline. It's in the Business Turnaround Plan.