Malaysian-led Consortium Proposes RM18.4 Bln MAHB Buyout

KUALA LUMPUR, Nov 15 (Bernama) -- Gateway Development Alliance Sdn Bhd (GDA) and its shareholders (consortium) today announced plans to launch a conditional voluntary takeover offer for all remaining shares in Malaysia Airports Holdings Bhd (MAHB) at RM11 per share, valuing the equity at RM18.4 billion.

The offer follows fulfilment of pre-conditions, including approvals from authorities in Türkiye, Saudi Arabia, Egypt and Malaysia, as outlined in the pre-conditional offer announcement dated May 15, 2024.

In a joint statement, the consortium said it, along with its parent companies, collectively owns 41.1 per cent of MAHB’s issued share capital as of Nov 15, 2024, the date of the notice of the conditional voluntary takeover offer.

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The consortium is led by two Malaysian entities: UEM Group Bhd (UEM Group), a wholly-owned subsidiary of Khazanah Nasional Bhd, and the Employees Provident Fund Board (EPF).

Consortium shareholders also include a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) and funds managed by Global Infrastructure Partners (GIP), a leading infrastructure investor.

Upon full acceptance of the offer, UEM Group’s stake in MAHB would rise from 32.99 per cent to 40 per cent, and EPF’s from 7.86 per cent to 30 per cent, according to the consortium.

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"This means that Malaysian investors will collectively own 70 per cent of MAHB. The remaining 30 per cent will be owned by ADIA and GIP," the statement said.

The joint statement also noted that the Malaysian Government would retain special share rights in MAHB, with the positions of chairman and chief executive officer or managing director reserved for Malaysian citizens.

All 39 Malaysian airports operated by MAHB will remain under the ownership of the Malaysian Government as specified in MAHB's operating agreements and will continue to be regulated by government agencies, including the Civil Aviation Authority of Malaysia, the Immigration Department, Royal Malaysian Customs, and the Royal Malaysian Police.

The consortium confirmed there are no plans for layoffs and that existing employment rights will be preserved under the offer.

The offer is conditional on the consortium securing acceptances that would bring its total holdings to at least 90 per cent of MAHB’s issued share capital by the offer closing date.

"The consortium intends to position MAHB for long-term sustainable growth, focusing on maintaining and upgrading airport infrastructure, enhancing passenger service levels, and improving airline connectivity, which will support traffic growth.  

"This, in turn, will provide lasting economic benefits for MAHB and its stakeholders, as well as for key economic sectors in Malaysia and Türkiye," it added.

-- BERNAMA