KUALA LUMPUR, May 15 – Gateway Development Alliance (GDA) 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 RM11.00 per share which is an equivalent of RM18.4 billion.
The Consortium is led by two Malaysian Government Linked Investment Companies – 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, according to a joint statement by the shareholders of GDA.
Upon full completion of the offer, Khazanah will be increasing its ownership in MAHB from 33.2 per cent to 40 per cent and EPF from 7.9 per cent to 30 per cent.
Collectively, Malaysian investors would own 70 per cent of MAHB. ADIA and GIP will hold the remaining 30 per cent. The government of Malaysia will retain special share rights in MAHB and the chairman and CEO will continue to be Malaysian citizens.
“Malaysia is strategically well located in the fast-growing Southeast Asian aviation market and has the potential to strengthen its long-haul and regional network,” Khazanah managing director Datuk Amirul Feisal Wan Zahir said in the statement.
“We are optimistic that the combined efforts of MAHB’s dedicated employees and the collective expertise of the Consortium would catalyse MAHB as a leading international airport operator, and stimulate economic growth through its airport network, in line with Khazanah’s goal of Advancing Malaysia,” he said.
The offer price of RM11.00 implies an equity value of RM18.4 billion, which translates to a price-to earnings ratio of 37.7x MAHB’s audited consolidated earnings per share for the financial year ended Dec 31, 2023.
The offer price represents a 15.2 per cent premium to the prevailing three-month volume-weighted average price (VWAP) of RM9.55 per share and also implies a 49.5 per cent year to date (YTD) increase based on the closing price of RM7.36 per share on Dec 29, 2023, in comparison to the 10.4 per cent YTD performance of the benchmark index FTSE Bursa Malaysia KLCI up to the date prior to the announcement of the offer.
If, on or after the date of this announcement and prior to completion of the offer, any dividend, distribution or other return of value is declared, made or paid by MAHB, the offer price shall be reduced accordingly.
In such circumstances, MAHB shareholders would be entitled to retain any such dividend, distribution or other return of value declared, made or paid, it said.
EPF chief executive officer Ahmad Zulqarnain Onn said the EPF views this offer as an investment opportunity that aligns with our investment objectives and commitment to bolster domestic investments.
“As an integral component of the national infrastructure, MAHB plays a vital role as a gateway for trade, tourism and business activities, contributing significantly to economic development and prosperity.”
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.
