KUALA LUMPUR (May 28): Malaysia Airports Holdings Bhd or MAHB (KL:AIRPORTS) said it has granted Segi Astana Sdn Bhd a further 22-year concession extension till 2069 to operate gateway @ klia2.

Segi Astana is 30% owned by MAHB, with the remaining 70% stake held by WCT Holdings Bhd (KL:WCT).

MAHB and WCT and the respective wholly owned units, Malaysia Airports (Sepang) Sdn Bhd and WCT Land Sdn Bhd, on Tuesday inked an agreement to extend the concession period by 22 years once the first 10-year extension period concludes on Aug 31, 2047.

As part of the concession extension, Segi Astana will issue 34.02 million shares or 32.08% of its enlarged share base to MAHB once the second 22-year extension concludes in August 2069.

The share issuance will see MAHB raise its stake in Segi Astana to 47%, while WCT’s equity interest will be diluted to 53% from 70%. WCT also holds the entire 86 million non-voting redeemable preference shares in Segi Astana.

In 2011, MAHB, WCT and Segi Astana signed the principal concession agreement to grant Segi Astana the concession on gateway @ klia2 on a build-operate-transfer model for a period of 25 years with an extension option of another 10 years.

Gateway @ klia2, then known as the integrated complex of klia2, was completed at the Kuala Lumpur International Airport's Terminal 2 in July 2013 and opened its doors to the public in May 2014. It comprises the transportation hub for the Express Rail Link (ERL) and other modes of transportation, the commercial complex and car parks.

The principal agreement’s 10-year extension option was later exercised, pushing the concession’s expiration date to 2047.

In March this year, MAHB and the government inked new operating and land lease agreements that extended MAHB’s concession to manage the airports in the country to February 2069, from 2034 previously.

Shares in MAHB ended 10 sen or 1% lower at RM9.92, valuing the airport operator at RM16.55 billion. WCT closed half a sen or 0.93% higher at 54 sen, giving the group a market capitalisation of RM758.58 million.