Khazanah-EPF coalition formally bids RM11 per share to take over Malaysian airports

After receiving clearance from the appropriate regulatory bodies, a group led by Khazanah Nasional Bhd and the Employees Provident Fund (EPF) has formally offered to acquire Malaysia Airports Holdings Bhd (MAHB) for RM11 per share, according to The Edge.

The Business Daily claims that this formal offer satisfies the requirements for the takeover after receiving approval from both domestic and foreign agencies. The consortium has now reaffirmed its plan to buy all of MAHB’s outstanding shares.

The offer price, representing a 6 percent premium over the last traded price of RM10.34 today, values MAHB at nearly 38 times its 2023 earnings.

The report stated that the offer remains conditional, requiring the consortium to own at least 90 percent of the company, including shares already held, before the closing date.

The consortium and its affiliates collectively own 41.1 percent of MAHB, which manages 39 airports in Malaysia, including five international airports and 17 smaller airports. The group also owns one international airport in Istanbul, Türkiye, The Edge reported.

According to the news article, if the buyout is successful, global partners Abu Dhabi Investment Authority (ADIA) and Global Infrastructure Partners (GIP) will own the remaining 30% of MAHB, leaving the Malaysian consortium members to possess 70% of the company.

After years of falling behind its regional rivals, some economists conjectured that privatization may increase the competitiveness of Malaysian airports.

The involvement of GIP, however, drew fresh criticism from opposition MPs who said it was connected to BlackRock, which is said to be the largest asset management company in the world and has significant direct investments in Israel.