KUALA LUMPUR: CIMB Securities has asked shareholders of Malaysia Airports Holdings Bhd (MAHB) to accept the offer by a consortium led by Khazanah Nasional Bhd to take the company private for RM11 a share.
"We believe the offer provides an opportunity for investors to realise immediate gains on investment and benefit from the joint offerors' resources and vision for sustainable growth, making it a favourable proposition."
"However, Malaysia's long-haul connectivity challenges and the capital investment required for infrastructure upgrades may pose risks to MAHB's organic growth. Hence, we recommend investors to accept the offer," it said in a note today.
On Friday, Khazanah, the Employees Provident Fund (EPF), Global Infrastructure Partners (GIP), and Abu Dhabi Investment Authority (ADIA) formally launched a conditional voluntary offer to privatise MAHB.
This follows the successful fulfilment of all four regulatory approvals outlined in the pre-conditions of the deal.
On Nov 15, 2024, the Malaysian Aviation Commission (Mavcom) confirmed its approval for the deal after the consortium entered into a binding shareholders' agreement. Approvals were secured from the General Authority of Competition of Saudi Arabia (June 12, 2024), the Egyptian Competition Authority (Aug 6, 2024), and the Turkish Competition Board (Aug 19, 2024).
Meanwhile RHB Investment Bank Research expects MAHB to be delisted by the first quarter (1Q) of 2025.
"We do not expect any negative surprises and believe MAHB is set to be delisted by 1Q25," the firm said.
MAHB's share price was trading at RM10.66 a share earlier.