Business

MAHB gets takeover offer worth more than RM12 billion

The deal would be Malaysia’s largest acquisition in nearly three years since DiGi.Com Bhd acquired Celcom Axiata Bhd for US$5.94 billion in 2021.

Updated 2 years ago · Published on 15 May 2024 8:05PM

MAHB gets takeover offer worth more than RM12 billion
Malaysian Airports Holdings Bhd said it had received a takeover offer worth over RM2 billion from a consortium. - May 15, 2024

MALAYSIA Airports Holdings Bhd said it had received a takeover offer worth over RM12 billion from a consortium led by its major shareholder Khazanah Nasional Bhd and the Employees Provident Fund (EPF).

According to reports in The Edge, the airport operator, in a  Bursa Malaysia filing, said the consortium is offering RM11 per share to acquire all the remaining 1.12 billion MAHB shares not already held by them.

This represents about 58.78% stake in the company.

The offer price is 60 sen or 5.77% higher than MAHB's share price at today's market close.

The stock has gained over 38% year-to-date. The stock, whose trading was suspended on Tuesday to make way for the announcement, hit a record high of RM10.46 before that. The stock traded at an average RM7.67 over the past one year.

Khazanah and the EPF are teaming up with New York-based Global Infrastructure Partners (GIP), and Abu Dhabi Investment Authority (ADIA), in forming the consortium dubbed as Gateway Development Alliance Sdn Bhd (GDA), to take MAHB private.

The report said that Khazanah will hold a 40% stake in the consortium, while the EPF will hold a 30% stake.

The remaining 30% will be held collectively by GIP and ADIA. Khazanah owns a 33.24% stake in MAHB, while EPF holds 7.86%. ADIA has 0.13%.

The Edge also earlier reported, citing sources, that the four parties are working together to privatise MAHB and that a couple of substantial shareholders of MAHB were planning to form a consortium to take the airport operator private.

The takeover of MAHB is aimed at upgrading and modernising the company’s operations, enhancing passenger service, improving airline connectivity and stimulating traffic growth, the joint offerors said on the rationale of their offer.

Besides that, the joint offerors are also looking to attract new airlines, upgrade service levels, grow airport capacity, and drive economic stimulus by partnering with state bodies and local businesses to expand activity around MAHB’s airports.

The deal, which would come to about RM12.32 billion or US$2.6 billion, would be Malaysia’s largest acquisition in nearly three years since DiGi.Com Bhd acquired Celcom Axiata Bhd for US$5.94 billion in 2021, according to Dealogic. - The Vibes, May 15, 2024


 

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