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Malaysian Government investment arm backs Malaysia Airports, Hochtief slips on Gatwick bid

Analysis

Malaysian Government linked investment group, Khazanah Nasional Bhd, which holds a majority stake in Malaysia Airports Holdings Bhd (MAHB), has stated it does not support plans by Sime Darby Bhd and AirAsia to construct an LCCT in Labu, Negri Sembilan (near Kuala Lumpur International Airport). Khazanah stated AirAsia and MAHB, operator of the existing LCCT at KLIA, should resolve their issues and instead focus on constructing a new LCCT next to Runway 2 at KLIA. The statement of support did not stop MAHB's shares falling a further 4.1% yesterday.

Summary
  • Malaysia Airports shareholder does not support competing private sector LCCT proposal in Kuala Lumpur;
  • Hochtief share fall as it confirms bid for Gatwick Airport.

Hochtief's shares also fell sharply yesterday (-6.9%) on confirmation the German construction giant has made a bid for London's Gatwick Airport. Fraport (-1.9%) confirmed it would not a bid for the facility.

Selected airports daily share price movements (% change): 19-Jan-09

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