KUALA LUMPUR (Feb 18): With the impending delisting of Malaysia Airports Holdings Bhd (MAHB) (KL:AIRPORT) from Bursa Malaysia following its takeover by Khazanah Nasional Bhd-led Gateway Development Alliance Sdn Bhd (GDA), all five independent non-executive directors of the airport operator have tendered their resignations effective on the date of delisting. Suspension of trading of MAHB shares is slated for Feb 20, with the delisting of its shares from Bursa due on Feb 25.

The quintet are Datuk Mohamad Husin, Ramanathan Sathiamutty, Cheryl Khor Hui Peng, Datuk Seri Koe Peng Kang and Chris Chia Woon Liat. They had recently opposed to the takeover of the airport operator by GDA, describing the offer at RM11 per share as both unfair and unreasonable.

This was despite Hong Leong Investment Bank, appointed as independent adviser for the deal, saying that the RM11 per share offer by the consortium was "not fair" but "reasonable", and recommending that shareholders accept the offer.

MAHB on Monday also announced that Tan Sri Zainun Ali, former Federal Court judge and ex-chairman of MAHB, had stepped down from the board of directors following the expiry of her tenure as a Ministry of Finance (Incorporated) nominee on Feb 16.

In a statement on Tuesday, MAHB chairman Dr Nungsari Ahmad Radhi said the group held its last board meeting as a Bursa-listed company on Monday, marking the end of a 25-year journey as a public-listed company that began in November 1999 when it debuted at RM2.50 per share.

"The offer by the GDA consortium to privatise MAHB was recently concluded at RM11 per share. MAHB has also distributed a total of RM2.806 billion of dividends up to 2023.

"I would like to personally thank all of them for their services to the group. They have conducted themselves professionally and upheld the highest standards of governance throughout the time they served on the board. They brought to the group their individual talent and experiences that have benefited the group," said Nungsari.

"As we end this phase of the MAHB journey, I would also like to thank the management, staff and the three unions within the MAHB Group for their dedication to the group."

Nungsari noted that MAHB started out as a government agency under the purview of the Ministry of Transport, then a corporatised entity and eventually a public-listed company.

"The impending delisting and privatisation will see MAHB emerge as a single shareholder company, owned 100% by GDA, with the government remaining a special shareholder. The new shareholders —sovereign wealth fund Khazanah, the Employees Provident Fund and Global Infrastructure Partners — will now be collectively responsible for the well-being of the group, the welfare of its staff and the overall development of the aviation sector in Malaysia more generally. I expect them to bring MAHB to greater heights while fulfilling the obligations of the operating agreements (OAs) in Malaysia and the concession agreement at Istanbul Sabiha Gokcen International Airport (ISG) in Türkiye," he added.

He said the aerotrain project at Kuala Lumpur International Airport (KLIA) is in progress and undergoing extensive testing to prepare for its operational date in the second quarter of 2025.

Nungsari also pointed to MAHB's signing of new OAs and lease agreements (LAs) with the government in March 2024 to manage 39 airports and short take-off and landing air strips (STOLports), noting that the new agreements lengthen the operating period to 2069 and provide clarity on how MAHB could recover its capital expenditure on airports. "The group subsequently embarked on the expansion of both Penang and Kota Kinabalu International Airports."

"MAHB remains a AAA-rated company by RAM Ratings and A3 by Moody’s, enabling it to raise funding at very competitive rates from the capital market. MAHB also secured a 99-year lease for KLIA Aeropolis in November 2022 under the development agreement (DA). The DA and LAs allow MAHB to further catalyse economic development via off-terminal related aviation and commercial related projects," he added.

Last year, MAHB's Malaysian operations saw a 15% growth in passengers and 12 new airlines flying into the country, with existing airlines adding 75 new routes. Malaysia is now linked to 124 international destinations via KLIA and four other international airports (Kuching, Langkawi, Penang and Kota Kinabalu). According to Nungsari, non-aeronautical revenues grew faster than aeronautical revenues in 2024 and contributed to 45% of total revenue. Its airports in Malaysia are close to 90% retail occupancy, ahead of pre-Covid-19 pandemic levels.

ISG, meanwhile, closed 2024 above a record 41 million passengers, and with a 20% increase in cargo tonnage. It added 16 new destinations and now serves a total of 141 destinations in 51 countries.

At noon market break, MAHB shares closed up two sen or 0.18% at RM10.90, giving it a market capitalisation of RM18.19 billion. Its share price is up 3.61% so far this year and 36.5% over the past 12 months.

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