‘We are almost there’ for aerotrain op resumption, says MAHB amid delays

Monday 20 Jan 2025

KUALA LUMPUR (Jan 20): Malaysia Airports Holdings Bhd or MAHB (KL:AIRPORT), which is in the midst of a privatisation exercise, said that the group is “almost there” for the resumption of its aerotrain services at the Kuala Lumpur International Airport (KLIA), following a near two-year suspension.

In an Instagram post with footage of the aerotrain being tested, MAHB said the system is undergoing “thorough checks, tests and retests” to ensure it meets world-class standards.

“Safety remains our top priority, and we are subjecting the train to rigorous processes to guarantee its reliability and efficiency,” it said.

Among others, the aerotrain system has undergone an 80-point rigorous safety inspection.

The next phase is a 2,000km free-fault run, which will be conducted with the Land Public Transport Agency (APAD).

However, the post, which had received 243 likes as at 4.15pm, did not elaborate on the expected commissioning date of the project.

The KLIA’s aerotrain has been suspended since March 2023, after a massive shutdown resulted in passengers having to walk along the rail track in the rain half-way from the airport terminal when it malfunctioned.

Ever since, the airport operator has resorted back to buses to move passengers between terminals while works on the rail system took place.

Last Wednesday (Jan 15), Transport Minister Anthony Loke Siew Fook expressed his dissatisfaction as the completion date for the aerotrain repair was still up in the air, pointing to delayed decisions by the MAHB board and management in the past.

As such, he reiterated his support for the privatisation of MAHB, saying that the exercise will "help streamline processes, enabling faster implementation and greater accountability".

Earlier on Monday, the Khazanah Nasional Bhd-led consortium that is taking MAHB private had lowered the acceptance condition of its takeover offer to at least 85%, from 90% previously. The deadline to accept the offer was also extended to Feb 4, 2025 from Jan 24, 2025.

This is the third time that the consortium, dubbed Gateway Development Alliance (GDA), has extended the deadline, which was initially set as Jan 8.

As of last Wednesday, GDA — which also includes the Employees Provident Fund (EPF), Abu Dhabi Investment Authority (ADIA) and Global Infrastructure Partners (GIP) — had amassed 86.18% of the total issued shares of MAHB.

The takeover offer, at RM11 per share, was issued in May 2024. It values the airport operator at RM18.4 billion. Comparatively, MAHB shares were up four sen or 0.37% to close at RM10.94 on Monday, valuing the group at RM18.25 billion.

All five independent directors of MAHB have advised shareholders to reject the deal, arguing that the offer undervalues the airport operator.

Meanwhile, Hong Leong Investment Bank, acting as an independent adviser, recommended shareholders to accept the offer, citing MAHB’s long-standing depressed share price, even though the offer was below its valuation range of RM12.61 to RM13.71 per share.

Edited ByLiew Jia Teng

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