MAS has further improved their bottom-line and will see better profits.Idris Jala has continuously proved that he is capable in generating what Jeff Ooi called excess revenue and cost reduction.
MALAYSIAN Airlines System Bhd (MAS) is selling the two-year-old Four Seasons Resort in Langkawi to a company controlled by a Saudi Arabian prince for RM435 million.
That way, they had generated another half a billion of "excess" revenue and by doing so, they would also be reducing the cost of overheads and expenses arising out of the operations.
MAS yesterday signed an agreement to sell "Malaysia's most expensive hotel" to Kingdom Langkawi BV, a company affiliated to Prince Alwaleed Bin Talal Bin AbdulAziz AlSaud.
This is Prince Alwaleed's first investment in Malaysia. A sum of RM400 million was agreed for the hotel portion and RM35 million for another 10ha of land.
MAS will gain RM62 million from the sale after taking into account its net assets of RM365.08 million and incidental expenses related to the disposal amounting to RM7.9 million, it said in a statement to Bursa Malaysia.
The sale forms part of Idris Jala's "strategic asset rationalisation exercise" through the disposal of "whatever assets" under its Business Turnaround Plan.
The disposal of the building and land measuring 35.64ha is expected to be completed by the third quarter of 2007.
Last year, MAS completed the sale of the MAS building at Jalan Sultan Ismail for RM194 million.
On Monday, the national carrier announced that for the full year ended December 31 2006, it posted a net loss of RM133.74 million. If they keep stripping their assets and if the price of crude oil will drop further below US$40, and if the government will allow them to increase the tickets by another 50% and PMB will further compensate them another RM600 as further agreed, then by next fiscal year, MAS can project to make profit of RM1bil net. Then, NST and The Star,( and Jeff may want to join in the chorus) will blow the trumpet of the great success but not mentioning the factors.
2 comments:
how is diff from the othe MAS turnaround plan...all also sell assets mah...even sell the MAS building too....no eye see la..strip strip strip...this is the oldest corporate game la...and the only one they know how to play ....
From the paper, it seems MAS gain RM62mils from selling the hotel. But in reality, the hotel will cost RM15-20 millions++ on financing interest, "miscellaneous" fees. Did MAS acquire the hotel land in a fair rates basis, we don't know.
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