KUALA LUMPUR (Jan 7): Kumpulan Wang Persaraan (Diperbadankan), or KWAP, and its affiliates have disposed of 119.25 million shares, or a 7.15% stake in Malaysia Airports Holdings Bhd (MAHB)(KL:AIRPORT), pursuant to the takeover offer by Gateway Development Alliance Sdn Bhd (GDA).
According to MAHB’s filing with Bursa Malaysia, the shares were disposed of on Jan 6, at RM11 apiece.
GDA — comprising the Employees Provident Fund (EPF), Khazanah Nasional Bhd, the Abu Dhabi Investment Authority (ADIA), and Blackrock Inc-backed Global Infrastructure Partners (GIP) — effectively held 75.73% equity interest in MAHB, including 5.65% stake that has been transferred to the offerors but pending receipt of the acceptance document, as at 5pm on Jan 6.
With the KWAP’s acceptance, this means GDA has effectively held about 82.9% stake in MAHB.
KWAP’s disposal came after the deadline for accepting a takeover offer by GDA, Pantai Panorama Sdn Bhd, Kwasa Aktif Sdn Bhd, and GIP Aurea Pte Ltd for the shares not already owned by the offerors, had been extended to Jan 17 from Jan 8.
MIDF, in a note on Tuesday, recommended that investors accept the RM11 offer, which is an 18% premium over its fair value of RM9.32 and a 125% premium over the latest net asset per share of RM4.89, with the stock currently valued at 7.1 times FY2024 enterprise value over Ebitda (earnings before interest, taxes, depreciation, and amortisation).
MIDF Research expects MAHB to undertake significant capital expenditure in the coming years, to expand and develop its airports, as it prepares for increasing passenger traffic demand.
This is likely to result in a longer gestation period for earnings, compounded by ongoing uncertainties surrounding the regulatory framework.
A consortium led by Khazanah Nasional and EPF had made a formal takeover offer for MAHB at RM11 per share in November 2024, after securing relevant regulatory approvals.
The consortium aims to position MAHB for long-term sustainable growth, focusing on the maintenance and upgrade of airport infrastructure, passenger services, and airline connectivity, to support traffic growth.
The government will 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. At the time of writing on Tuesday, MAHB shares were up one sen or 1% at RM10.58, valuing the company at RM17.65 billion.