(AFP) Malaysia's airports operator today said plans were underway to sell a 30 percent stake to the Dutch Schipol group.

Malaysia Airports Holdings, in a statement to the stock exchange, said the finance ministry on Aug 16 signed a memorandum of understanding (MOU) with Schiphol International BV which operates Armsterdam airport.

The MOU paved the way for Malaysia Airports, which operates the country's airports including Kuala Lumpur international airport (KLIA), to take on a strategic foreign partner.

Schipol is to acquire 330 million shares, representing a 30 percent stake in Malaysia Airports, in two tranches. The statement did not mention the selling price.

"Schiphol shall commence negotiation and discussions with the Ministry of Finance and evaluation on Malaysia Airport with the view to finalise the terms and conditions of the proposed acquisition," it added.

Major cuts in charges

Local newspapers in June reported that the government was selling the Malaysia Airports stake to Schipol for around one billion ringgit.

Analysts have said a foreign partner would boost efforts to turn KLIA into a regional hub after being hit by the withdrawal of four airlines since it opened in June 1998.

The government in April announced major cuts in airport charges to increase business at KLIA, sited south of Kuala Lumpur. Passenger flights would be exempted from landing and parking charges for a year.