GDA Offers to Fully Acquire Malaysian Airports Holdings

Six months after the Malaysian government announced to privatise Malaysia Airports Holdings Bhd (MABH) a consortium named Gateway Development Authority which includes Abu Dhabi Investment Authority (ADIA) have fulfilled all conditions precedent to take over the remaining shares of the company that manages airports in Malaysia and Turkiye.

ADIA, which is part of the consortium, led by Malaysian sovereign wealth fund Khazanah Nasional Berhad, Malaysian pension fund Employees Provident Fund (EPF), and Global Infrastructure Partners Aurea Pte Ltd (GIP), submitted an offer notice last week through Aminvestment Bank which representing the consortium on last Friday, according to a filing on Malaysian stock exchange Bursa Malaysia.

The consortium, which has a share of 41.1% in MABH), has offered $2.4 per share, representing a 6% premium over the previous traded price on Friday, and valuing it around $4 billion. As per the offer, the consortium need to acquire at least 90% of the company’s shares to go through.

Upon the transaction’s completion, the two Malaysian investors will collectively own 70% of MAHB -Khazanah will increase its ownership in Malaysia Airports from 33.2% to 40%, EPF from 7.9% to 30% – while ADIA and GIP will hold the remaining 30%.

The consortium decided to submit the offer notice after receiving regulatory approval from the Malaysian Aviation Commission and fulfilling the pre-conditions set by foreign and domestic authorities.

Sustainable Growth

In a statement, the consortium said that it aims to pursue a sustainable, long-term growth for the company, which will be best achieved when the company goes private. The consortium also aims to boost Malaysia Airports’ profitability, upgrade airport infrastructure, enhance passenger service levels and improve airline connectivity.

Focusing on the maintenance and upgrade of airport infrastructure, passenger service and airline connectivity will support traffic growth. This in turn will provide lasting economic benefits for MAHB and its stakeholders, and also for key economic sectors in Malaysia and Turkiye, the consortium explained.

Further, the consortium also reiterated that there are no plans for layoffs, and existing employment rights will remain protected.

Malaysia Airports manages 39 airports throughout Malaysia, including five international airports, 17 domestic airports and 17 short take-off and landing ports. Additionally, it owns and manages one international airport in Istanbul, Turkiye.