PROFITABLE VENTURE: MAHB’s potential 100pc stake in Istanbul airport is worth €1.04b
MALAYSIA Airports Holdings Bhd’s (MAHB) potential 100 per cent stake in Istanbul Sabiha Gokcen International Airport (ISG) in Turkey is worth €1.04 billion (RM4.44 billion), which will be almost double its investment.
This is according to independent valuer ING Advisory Group in a circular to MAHB shareholders at its extraordinary general meeting (EGM) on Tuesday.
The EGM is to acquire shareholders’approval for the purchase of the remaining 40 per cent stake in ISG, Istanbul’s second international airport.
MAHB currently owns 60 per cent of ISG. It bought a 20 per cent stake in 2007 for €35 million before buying another 40 per cent in April for €209 million.
It is planning to acquire the remaining 40 per cent from Turkey’s Limak Group for €285 million, but ING Advisory is valuing the stake at €416 million.
“This means the 100 per cent stake in ISG will be equivalent to €1.04 billion as the existing 60 per cent it owns is worth €624 million.
“On paper, MAHB will gain about €511 million from acquiring 100 per cent of ISG.”
Sources said MAHB was poised to earn more next year from its 100 per cent ownership of the airport.
“While ISG is currently losing money, as the gestation period to run a new airport usually takes six to seven years, MAHB expects it to make a small profit next year as Istanbul is experiencing growth in travel,” said a source close to MAHB.
The deal for the remaining 40 per cent stake is expected to be concluded next week.
The sources said MAHB would be consolidating ISG’s profit and loss in the next financial year.
ISG is one of two international airports serving Istanbul and serviced a total of 18.84 million passengers last year, representing a compounded annual growth rate (CAGR) of about 30.6 per cent from 3.79 million passengers in 2007.
According to the United Nations World Tourism Organisation, Turkey hosted 37.8 million tourists last year.
“Turkey is a very vibrant country in terms of tourism. ISG is expected to receive up to 24 million tourists this year. This is especially good for MAHB, which is banking on positive numbers to grow its revenue and net profit,” another source said.
MAHB closed 24 sen higher at RM6.80 yesterday.