MAS prices upcoming rights issue

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Malaysian Airlines (MAS) has released further details of its upcoming rights issue that will see the flag carrier issuing up to 13 billion rights shares to fund pre-delivery payments for 17 Boeing 737-800s and five Airbus A330s.

The proceeds will also be used to debt and bolster working capital, says MAS.

The carrier fixed the issue price at Malaysian ringgit (M$) 0.23 ($0.08) per rights shares as it seek to raise up to M$3.075 billion in gross proceeds.

Shareholders will be entitled to get four rights shares for every one existing ordinary share of M$0.10 each under the transaction.

A prospectus for the proposed rights issue will be issued by the end of April, MAS says.

According to the schedule, the despatch date is 8 May 2013. The date for announcement of final subscription result and basis of allotment of excess rights securities is 27 May. The listing date of the right securities is planned for 5 June.

MAS also announced that the capital restructuring took effect on 11 April. The carrier reduced the par value of its shares by 90% to M$0.10.

CIMB Investment Bank is advising MAS on the rights issue and the capital restructure.