KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB) has received a takeover offer from a four-member consortium led by its major shareholder Khazanah Nasional Bhd, in a deal worth about RM12.3 billion.
Khazanah, along with the Employees Provident Fund (EPF), New York-based Global Infrastructure Partners (GIP) and Abu Dhabi Investment Authority (ADIA) are jointly offering RM11.00 per share to buy all of the remaining shares in MAHB not already owned by them.
The Gateway Development Alliance consortium, in a statement today, said upon completion of the offer, Khazanah's stake in MAHB will increase to 40 per cent rom 33.2 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 will retain special share rights in MAHB and the chairman and chief executive officer will continue to be Malaysian citizens, the statement said.
The consortium said the offer is aimed at driving long-term sustainable growth for MAHB, with a focus on enhancing passenger experience and increasing airline connectivity.
This in turn will provide lasting economic benefits, not only for MAHB and its stakeholders, but also for the industrial and tourism sectors in Malaysia and Türkiye.
"The consortium believes that these objectives will be best achieved by MAHB as a private entity, taking a long-term approach to decision-making and capital investment and benefitting from international technical expertise," it said.
As at May 14 this year, being the last practicable date prior to this announcement, the consortium and its parent companies in aggregate own 41.1 per cent of MAHB's issued share capital.
The consortium said it is committed to safeguarding the rights of MAHB's existing employees, with no plans for layoffs.
"There will also be no changes to the passenger service charge rates published by Mavcom (Malaysian Aviation Commission) on March 12, 2024. The consortium is committed to MAHB's airport operations and improving service levels at Istanbul Sabiha Gökçen in Türkiye," it added.
Khazanah managing director Datuk Amirul Feisal Wan Zahir said 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.
Amirul Feisal said Khazanah is optimistic that the combined efforts of MAHB's dedicated employees and the collective expertise of the consortium would catalyse it as a leading international airport operator.
"This will stimulate economic growth through its airport network, in line with Khazanah's goal of Advancing Malaysia," he said.
GIP chairman and chief executive officer Bayo Ogunlesi said the company is delighted to partner with Khazanah, the EPF and ADIA, with whom it has strong and productive strategic relationships.
"Given GIP's substantial expertise in owning and operating airports, together with our partners, we can focus on improving customer service, elevating operational excellence, growing passenger volumes and enhancing employee engagement.
"We look forward to working with our partners to build a bright future for Malaysia, MAHB and all stakeholders," he added.
EPF chief executive officer Ahmad Zulqarnain Onn views the offer as an investment opportunity that aligns with the fund's 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.
"We expect this investment to bring positive benefits to EPF's members and the public, thereby contributing significantly to Malaysia's sustainable growth agenda."
Khadem Alremeithi, ADIA executive director of infrastructure department, said: MAHB's airport network serves some of the world's fastest growing aviation markets, which are benefiting from regional economic growth, increased air travel affordability and shifts in consumer spending.
"This positive backdrop underpins our participation in the consortium, which combines strong local partners with extensive international expertise."
Meanwhile, the consortium said the offer price of RM11 per share represents a 15.2 per cent premium over MAHB's prevailing three-month volume-weighted average price (VWAP) of RM9.55.
This price also reflects a significant 49.5 per cent year-to-date (YTD) increase, compared to the 10.4 per cent YTD performance of the benchmark index FTSE Bursa Malaysia (FBM KLCI).
"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.