KUALA LUMPUR (Nov 15): A consortium led by Khazanah Nasional Bhd and Employees Provident Fund on Friday made a formal takeover offer for Malaysia Airports Holdings Bhd (KL:AIRPORT) at RM11 per share, after securing relevant regulatory approvals. 

The formal offer comes following greenlight from foreign and domestic authorities, fulfilling pre-conditions of the proposed takeover, according to a statement. The consortium is now announcing their firm intention to buy all remaining shares of Malaysia Airports. 

The offer is still conditional, requiring the consortium to own at least 90% of the company including shares already owned, on or before the closing of the offer.

Malaysia Airports on Friday acknowledged the receipt of a notice of the conditional takeover offer from AmInvestment Bank acting on behalf of the consortium, according to an exchange filing. 

The notice also spelled out confirmation from the Malaysian Aviation Commission that it is satisfied after reviewing the consortium's shareholders’ agreement. 

Investment matters involving Khazanah, the Employees Provident Fund (EPF), and Permodalan Nasional Berhad however fall outside the Cabinet’s jurisdiction, Prime Minister Datuk Seri Anwar Ibrahim said in June. 

The offer price — a 6% premium over the last traded price of RM10.34 on Friday — values Malaysia Airports at RM18.4 billion or nearly 38 times the earnings in 2023.

Trading of MAHB’s shares, which was paused for about two hours, resumed at 2:30 pm. The stock was up 3.1% at RM10.60 at 4.20pm, giving the company a market capitalisation of RM17.69 billion. 

The consortium and its related companies collectively hold 41.1% in Malaysia Airports, also known as MAHB, which manages 39 airports nationwide, including five international airports and 17 smaller airstrips. The group also owns one international airport in Istanbul, Türkiye.

If the takeover first announced in May is successful, the Malaysian members of the consortium will own 70% in MAHB while foreign partners of the consortium Abu Dhabi Investment Authority and Global Infrastructure Partners will have the remaining 30%.

The consortium intends to position MAHB for “long-term sustainable growth”, the statement read. 

Focusing on the maintenance and upgrade of airport infrastructure, passenger service and airline connectivity will support traffic growth, the consortium said.

“This in turn will provide lasting economic benefits for MAHB and its stakeholders, and also for key economic sectors in Malaysia and Türkiye,” which are best achieved by MAHB as a private entity that will allow long-term approach while benefitting from international expertise, the consortium said.

Further, the consortium also reiterated that there are no plans for layoffs, and existing employment rights will remain protected.

The government will also maintain its special rights in MAHB, which will continue to be regulated by various government agencies, including the Civil Aviation Authority of Malaysia, the Immigration Department, the Royal Malaysian Customs Department and the Royal Malaysian Police.

The proposal to acquire MAHB was first announced in May 2024.