KUALA LUMPUR (Dec 6): Gateway Development Alliance (GDA), the consortium proposing to privatise Malaysia Airports Holdings Bhd (MAHB) (KL:AIRPORT), has extended the closing time and date for the acceptance of its takeover offer to 5pm on Jan 17, 2025, from 5pm on Jan 8, 2025, previously.
Besides the extended closing date, all other details, terms and conditions of the takeover offer as set out in the initial offer document, including the offer price of RM11 per share, and the acceptance condition of 90% of the total issued MAHB shares, remain unchanged.
According to a filing on Bursa Malaysia on Monday, GDA — comprising the Employees Provident Fund (EPF), Khazanah Nasional Bhd, the Abu Dhabi Investment Authority (ADIA) and Blackrock Inc-backed Global Infrastructure Partners (GIP) — has already held 70.1% in MAHB as at 5pm on Jan 6.
On top of that, a total of 94.3 million shares, representing 5.65% stake, has also been transferred to the offerors but pending receipt of the acceptance document. Including this portion, GDA has effectively held 75.73% of the total issued shares in MAHB.
"The level of acceptances of the offer as at 5pm on Wednesday, Jan 8, 2025 [being the first closing date] will be announced in due course," said AmInvestment Bank, on behalf of the offerors.
The offerors also reiterated its view that the offer is "compelling" as it presents holders the opportunity to realise their investment in MAHB for cash.
"The offer price represents, amongst others, a 49.46% YTD increase based on the closing price of RM7.36 on Dec 29, 2023, which compares to the 10.04% YTD performance of the benchmark index FBM KLCI," it said.
Last month, all five MAHB independent directors said in a circular that there are no compelling reasons for shareholders to accept the offer, which they said does not reflect MAHB’s full potential, considering its positive financial momentum, growth strategy and potential value accretion if it remains publicly traded.
In contrast, independent adviser Hong Leong Investment Bank (HLIB) recommended shareholders to accept the offer, describing it as reasonable due to MAHB's prolonged suppressed share price, although the offer is below its independent fair valuation of between RM12.61 and RM13.71 per share.
The proposed takeover offer was first announced in May 2024. Following regulatory approvals from foreign and domestic authorities, a formal takeover offer was issued in November 2024.
The offer price — a 5% premium over the last traded price of RM10.48 on Monday — values MAHB at RM18.4 billion or nearly 38 times the earnings in 2023. At RM10.48 per share, MAHB's current market capitalisation stands at RM17.49 billion.
Post-privatisation, Khazanah will own 40% of MAHB, while the EPF will hold 30%, and ADIA and GIP the remaining 30%.