16-May-2024 11:37 AM

Gateway Development Alliance submits offer to acquire Malaysia Airports

Global Infrastructure Partners (GIP) announced (15-May-2024) its consortium Gateway Development Alliance submitted a pre-conditional voluntary offer to acquire all shares in Malaysia Airports (MAHB) at an offer price of MYR11 (USD2.34) per share. The consortium is led by Khazanah Nasional through its wholly owned subsidiary UEM Group and the Employees Provident Fund (EPF). The consortium also includes a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) and funds managed by GIP. As of 14-May-2024, the consortium and its parent companies in aggregate own 41.1% of MAHB's issued share capital. Further details include:

  • Upon completion of the offer, Khazanah would increase its ownership in MAHB from 33.2% to 40% and EPF would increase its ownership from 7.9% to 30%. Malaysian investors would therefore own 70% of MAHB. ADIA and GIP would hold the remaining 30%. Malaysia's Government would retain special share rights in MAHB;
  • The consortium aims to support MAHB to deliver "high priority" capital projects. It will also aim to improve passenger flows and expand the retail and food and beverage offering at MAHB's airports;
  • The consortium confirmed there are no plans for layoffs as a result of the offer and that existing employment rights will be safeguarded. There will also be no changes to the passenger service charge rates published by MAVCOM on 12-Mar-2024;
  • A formal offer for MAHB is subject to certain pre-conditions and, when made, will be subject to the consortium owning at least 90% of MAHB's issued share capital. If such conditions are met, it is expected that MAHB's shares would de-list from Bursa Malaysia upon completion of the offer, which is estimated to occur in 4Q2024. [more - original PR]

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