WITH financing from a European bank, Golden Skies Ventures (GSV) has placed a US$2.5 billion offer to take over Malaysia Airlines Bhd, Reuters reported.

GSV told Reuters that it will take three to four months to get long-term financing.

“We have secured in excess of US$2.5 billion from the bank. We will take about three to four months to get the long-term financing,” chief executive Shahril Lamin told Reuters in a phone interview.

The firm also has a commitment from a Japanese private equity firm to inject immediate funds into the aviation group through an equity deal.

However, GSV declined to name the firms involved.

It is also in talks with other foreign banks and private equity firms for further funding.

It has also submitted its proposal to Morgan Stanley, the banker hired by Khazanah Nasional Berhad to look into this matter.

According to GSV’s proposal, the government will get to keep its so called golden share that allows it majority voting rights and maintain Malaysia Airlines flag carrier status.

The firm will also assume most of the Malaysia Airlines Berhad’s debt held by the government in outstanding Islamic bonds.

It also expects to have ample liquidity to help the airline operate comfortably for up to 18 months.

“(It) is still a viable venture, it has inherent strengths. We are saying we won’t lay off the 13,000 frontline employees and we are not going to asset-strip the airline,” GSV deputy chief executive Ravindran Devagunam said.

GSV also intends to reinstate the airline as a premium long-haul carrier by expanding its flight network and maximising utilisation of Malaysia Airlines’ 81-plane fleet.

It aims to achieve positive earnings earnings before interest, taxes, depreciation and amortisation (Ebitda) within three years of taking over, and is vying for a RM15 billion in revenue in 2025.

There also plans for listings or a string of initial public offering in three to five years.

The previous Pakatan Harapan government was ready to listen to offers for the national carrier despite its majority shareholder Khazanah being against it.

No decision had been made on the matter.

The present government has not made its stand on the matter public. – April 7, 2020.