KUALA LUMPUR (Jan 8): The level of acceptances of the takeover offer by Gateway Development Alliance (GDA), the consortium proposing to privatise Malaysia Airports Holdings Bhd (MAHB) (KL:AIRPORT), has reached 83.04% as of the first closing date of Jan 8.
On top of that, a total of 18.18 million shares, representing a 1.09% stake, has also been transferred to the offerors but pending receipt of the acceptance document.
Including this portion, GDA is effectively holding 84.12% of the total issued shares in MAHB, according to a press release on Wednesday.
GDA — comprising the Employees Provident Fund (EPF), Khazanah Nasional Bhd, the Abu Dhabi Investment Authority (ADIA) and Global Infrastructure Partners (GIP) — will have seven more days until Jan 17 to meet the acceptance condition of 90% of the total issued MAHB shares.
This is following the extension of the closing time and date for the acceptance of the takeover offer announced on Monday.
In a separate statement, GDA reiterated its view that MAHB’s shortcomings will only be properly addressed if it is not constrained by a public market listing and is able to take a fresh approach.
It highlighted the decade-long multiple service failures of the Aerotrain at KLIA Terminal 1, which has been suspended for nearly two years, as an example of mismanagement. "As it nears the second anniversary of total service suspension, the re-opening date remains uncertain," GDA said.
The consortium pointed out that over the past five years, MAHB invested RM1.3 billion in capital expenditure, significantly trailing regional competitors like Singapore’s Changi Airport (RM18.9 billion) and Indonesia’s Angkasa Pura (RM8.1 billion).
This lack of investment, the consortium argued, has led to an ageing infrastructure, declining passenger experience, and KLIA’s global ranking dropping to 71st in 2024 from 2nd in 2001.
"MAHB’s airports are in urgent need of significant remediation and expansion capex," it added.
All five independent directors of MAHB previously advised shareholders to reject the takeover offer, arguing that it undervalues the company. They highlighted MAHB’s strong financial performance, strategic growth plans, and the potential for value appreciation if it remains listed.
However, Hong Leong Investment Bank (HLIB), acting as an independent adviser, recommended shareholders to accept the offer. HLIB described the proposal as reasonable, citing MAHB’s long-standing depressed share price, even though the offer fell below the bank’s independent valuation range of RM12.61 to RM13.71 per share.
The takeover bid, first announced in May 2024, sees GDA forking out over RM12.3 billion for MAHB shares, or RM11 per share, not held by the offering parties prior to the proposal announcement, and values MAHB at RM18.35 billion; at 12.5 times trailing price-to-earnings ratio or 2.25 times price-to-book ratio.
If the privatisation proceeds, Khazanah will hold a 40% stake in MAHB, while EPF will own 30%, with the remaining 30% shared between ADIA and GIP. Prior to the takeover bid, Khazanah owned a 33.2% stake in MAHB, while EPF held a 7.9% stake. ADIA, on the other hand, had a 0.13% stake.
Shares of MAHB were up 14 sen or 1.32% to close at RM10.78 on Wednesday, for a market capitalisation of RM17.99 billion.
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