Malaysia Airlines could face a complete overhaul of its business.
Khazanah Nasional, the Malaysian government's strategic investment fund, already owns 69.4 per cent of the company, but now it has proposed buying the remaining stock for 0.27 ringgit per share.
If the purchase goes ahead, the airline will be delisted. Early morning trading was suspended in anticipation of the news.
The airline has faced a testing year so far, with the disappearance of flight MH370 in March and, more recently, the crash of flight MH17 in eastern Ukraine resulting in poor business performance and doubts about its future.
Over the past nine months, Malaysia Airlines' market value has fallen by over 40 per cent. It has also suffered from a significant increase in cancellations and a 60 per cent decline in sales from China.
In May, it reported that its net loss had increased by 59 per cent between January and March. This was the company's fifth straight quarter of losses.