MAS eying Qantas equity participation

MAS eying Qantas equity participation

KUALA LUMPUR (Dow Jones): Malaysian Transport Minister Ling Liong Sik Tuesday said the board of directors of Malaysian Airline System Bhd. will discuss a possible equity participation by Australian carrier Qantas Airways Ltd.

"Malaysian Airline's board will decide on this and you will know pretty soon," Ling told reporters after speaking at ministerial meeting, the national Bernama news agency reported.

Earlier Tuesday, the daily Business Times said Malaysian Airline is believed to have sought a waiver from the 30 percent limit on foreign shareholding in local companies.

Quoting an unnamed source, the report said the company has asked the government for permission to raise foreign interest to as high as 45 percent.

Malaysian Airline operates the national carrier, Malaysia Airlines.

The report quoted the source as saying that "subject to details to be worked out, it is likely to get (the waiver)."

Malaysian Airline officials were not immediately available for comment.

The government gives exemptions from the 30 percent cap on foreign shareholding in local companies where alliances are deemed crucial to the development of an industry.

At present, foreign shareholders collectively own 16.57 percent of Malaysian Airline. The single largest foreign shareholder is the Brunei Investment Agency, which has a 9.1 percent equity interest.

Last week, Business Times reported that Malaysian Airline was talking with Australia's Qantas for the latter to possibly take a stake in Malaysian Airline.