A majority of 94% of MAS’s shareholders agreed to the 27 sen exit price at  the  EGM  yesterday,  according  to  chairman  Tan  Sri  Md  Nor  Yusof. With the acceptance of the offer, Khazanah will become 100% owner of MAS and proceed to implement a RM6bn plan that is  designed to return the airline back to profitably in three year. (Source: Malaysia Reserve)

Comment: With the acceptance, MAS is expected to be delisted by end of this year. As the privatisation and turnaround plan going on track, this would be positive for the domestic aviation industry, as price competition may soften going forward. For exposure to the local aviation, we continue to like AirAsia BUY: TP:RM2.60).

Source: Affin Hwang Capital Research - 7 Nov 2014