Khazanah-EPF consortium extends deadline for MAHB takeover bid again to Jan 24 now

Wednesday 15 Jan 2025

KUALA LUMPUR (Jan 15): Khazanah-EPF consortium Gateway Development Alliance (GDA) has extended the closing date for its takeover offer for Malaysia Airports Holdings Bhd or MAHB (KL:AIRPORT) to Jan 24 from Jan 17.

This is the second time that GDA has extended the deadline, which was initially set as Jan 8.

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, said AmInvestment Bank, on behalf of the offerors, in a statement.

As of Wednesday (Jan 15), GDA — comprising the Employees Provident Fund (EPF), Khazanah Nasional Bhd, the Abu Dhabi Investment Authority (ADIA) and Global Infrastructure Partners (GIP) — has garnered 86.18% of the total issued shares of MAHB, still short of the 90% acceptance rate condition.

Earlier on Wednesday, Transport Minister Anthony Loke Siew Fook had reiterated his support for the privatisation of MAHB, hoping that the corporate exercise can be finalised soon.

He emphasised that the decision to privatise MAHB was made by Khazanah, in conjunction with its consortium partners, contending that the move would allow the company to respond more swiftly to industry demands and expand its capacity at a quicker pace.

The minister also expressed his dissatisfaction as the aerotrain completion date for the Kuala Lumpur International Airport (KLIA) is still up in the air.

As part of the takeover bid, GDA is offering RM11 per share to buy out all the remaining 1.12 billion MAHB shares not already owned, 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 a level (adjusted) that MAHB had never reached since it was listed in late 1999. The stock was last traded at RM10.40, after a strong rally over the past few months prior, at the time the takeover bid was launched. MAHB's share price closed at RM10.90 on Wednesday, with a market capitalisation of RM18.19 billion. The stock has gained over 40% in the past year.

Nonetheless, all five independent directors of MAHB have advised shareholders to reject the takeover offer, arguing that the offer undervalues the airport operator. 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.

Prior to the takeover bid, Khazanah owned a 33.2% stake in MAHB, while the EPF held 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 the 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 ByKathy Fong

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