Inability to meet 90% acceptance for MAHB takeover signals govt failure

Thursday 09 Jan 2025

KUALA LUMPUR (Jan 8): Global Development Alliance’s (GDA) inability to secure 90% shareholder acceptance for its takeover of Malaysia Airports Holdings Bhd (MAHB) (KL:AIRPORT) by the initial Jan 8, 2025 deadline is an indication of the government’s failure and investors’ rejection of the privatisation plan, said Machang MP Wan Ahmad Fayhsal Wan Ahmad Kamal.

In a statement on Wednesday, Wan Ahmad Fayhsal, who holds the international affairs portfolio for Perikatan Nasional MPs, lauded MAHB shareholders who have held onto their stakes, prompting the extension of the deadline to Jan 17, 2025.

He described the deadline extension as a significant setback for the government’s effort to privatise and delist MAHB from Bursa Malaysia, calling it evidence of diminished confidence from both foreign and local investors.

"The move to privatise and delist MAHB from the public market must be stopped in the interest of the people and the dignity of the nation," he said, urging stakeholders to stand with Perikatan Nasional’s push to halt the privatisation plan.

As of Jan 8, GDA — comprising the Employees Provident Fund (EPF), Khazanah Nasional Bhd, the Abu Dhabi Investment Authority (ADIA) and Global Infrastructure Partners (GIP) — effectively holds 84.12% of the total issued shares in MAHB.

The consortium will have seven more days until Jan 17 to meet the acceptance condition of 90% of the total issued MAHB shares, following the extension of the closing time and date for the acceptance of the takeover offer announced on Monday.

GDA did not cite any reason for the deadline extension.

On Wednesday, 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.

As part of the takeover offer, GDA is offering RM11 per share to acquire all the remaining 1.12 billion MAHB shares not already held by them, representing an about 67.01% stake in the company. This values the airport operator at RM18.4 billion or nearly 38 times its earnings in 2023.

The offer price of RM11 per share is 22 sen or 2% higher than MAHB's last traded price of RM10.78 on Wednesday, with a market capitalisation of RM17.99 billion. The stock has gained over 40% in the past year.

Prior to the takeover bid, Khazanah owned a 33.2% stake in MAHB, while EPF holds a 7.9% stake. ADIA, on the other hand, had a 0.13% stake.

Upon completion of the takeover, the consortium will wholly own MAHB. Khazanah will be the single largest shareholder with a 40% stake in the consortium, while EPF will hold 30%.

GIP will have an effective 25% stake in MAHB via its 83.3% stake in a joint venture with ADIA. ADIA will have a 5% effective stake.

Edited ByEsther Lee

Text Size