Khazanah Nasional, which owns a majority stake in the carrier, says Friday it plans to buy out minority shareholders at a premium to the airline's recent share price.
Malaysia Airlines has been hit by two major disasters this year, which added to its longstanding financial woes.
Khazanah says a "complete overhaul" of the airline would be carried out.
In March, Flight 370 from Kuala Lumpur to Beijing disappeared with 239 people on board after flying far of course. The plane has still not been found. In July, 298 people were killed when Flight 17 was shot down over Ukraine