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The Abu Dhabi Investment Authority (ADIA) submitted a formal conditional offer last week to take over the remaining shares of Malaysia Airports as part of a consortium with Malaysian sovereign wealth fund Khazanah Nasional Berhad, Malaysian pension fund Employees Provident Fund, and Global Infrastructure Partners, The Edge Malaysia reports. An offer notice was submitted to Malaysia Airports by AmInvestment Bank, which is acting on behalf of the consortium on Friday.
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The breakdown: The offer on the table includes paying MYR 11 (USD 2.4) per share, representing a 6% premium over the previous traded price on Friday, and valuing it at USD 4.1 bn. Upon the transaction’s completion, the two Malaysian investors will collectively own 70% of MAHB, with Adia and GIP holding the remaining 30%.
The offer is conditional, meaning the bidders need to acquire at least 90% of the company’s shares — including its current 41.1% stake — to go through.
Regulatory authorities gave the bid its green light: This decision was made after receiving regulatory approval from the Malaysian Aviation Commission and fulfilling the pre-conditions set by foreign and domestic authorities.
Analysts think shareholders will agree: “We believe the risks skew towards acceptance,” NST reports, citing a report by Macquarie Capital Securities (Malaysia), which says the government’s plans to pursue privatization will drive it to accept.
The consortium is not planning any layoffs following the acquisition, with plans to focus on the maintenance and development of airport infrastructure, passenger services and airline connectivity, The Edge reports.
Others are eyeing Malaysia: UAE-based airline Royal Jet inked a conditional Heads of Agreement with Sapura Resources Berhad (SRB) back in July 2023 to acquire SRB’s aviation business at Subang International Airport.
