KUALA LUMPUR – Gateway Development Alliance and its shareholders have today announced a pre-conditional voluntary offer to acquire all the shares in Malaysia Airports Holdings Bhd (MAHB) not already owned by the Consortium, at an offer price of RM11 per share.
The Consortium is led by two Government Linked Investment Companies (GLIC) – Khazanah Nasional Bhd, via its wholly owned subsidiary UEM Group Bhd, and the Employees Provident Fund (EPF).
The Consortium’s shareholders also comprise a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) and funds managed by Global Infrastructure Partners (GIP), one of the world’s premier infrastructure investors and an experienced airport owner and manager, MAHB said in a Bursa Malaysia filing today.
*The offer price at RM11 per share implies an equity value of RM18.4 billion
*As of May 14, 2024 the Consortium and its parent companies in aggregate own 41.1% of MAHB’s issued share capital
*Upon full completion of the offer, Khazanah will be increasing its ownership in MAHB from 33.2% to 40% and EPF from 7.9% to 30%
*Collectively, Malaysian investors would own 70% of MAHB
*ADIA and GIP will hold the remaining 30%
*The Malaysian government will retain special share rights in MAHB and the chairman and CEO will continue to be Malaysian citizens
*The offeror does not intend to maintain the listing status
MAHB was last traded at RM10.40 per share.
Presently, MAHB manages 39 airports throughout Malaysia, including five international airports, 17 domestic airports and 17 STOLports (Short Take-Off and Landing). Additionally, it owns and manages one international airport in Istanbul, Turkiye.
In March, Transport Minister Anthony Loke refuted claims made by Bersatu’s Machang MP Wan Ahmad Fayhsal Wan Ahmad Kamal that Khazanah and EPF were in business with an Israel-linked firm.
Loke was asked in the Dewan Rakyat about a joint consortium between Khazanah and EPF with GIP to take up shares in MAHB.
Wan Fayhsal expressed concern that New York-based investment firm BlackRock Inc, which owned shares in weapons companies supplying arms to Israel, also owned GIP.
He added that GIP owned shares in Raytheon, Lockheed Martin and Northrop Grumman – all major weapons contractors.
News of the potential consortium deal was previously published by The Edge, which cited sources claiming that GIP was “well known” for running airports. – May 15, 2024