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The Abu Dhabi Investment Authority (ADIA) has offered to buy out 67% of Malaysia Airports Holdings Berhad as part of a consortium with Malaysian sovereign wealth fund Khazanah Nasional Berhad, Malaysian pension fund Employees Provident Fund, and Global Infrastructure Partners, according to a GIP statement. Malaysia Airports manages most of the airports in Malaysia.
The details: The offer on the table includes paying MYR 11 (USD 2.34) per share, representing a 15% premium over Malaysia Airports’ three-month volume-weighted average price and valuing it at USD 3.9 bn, according to the statement.
Who owns what now…? The consortium collectively owns 41.1% of the operator at present, with Khazanah being its biggest shareholder, with a stake of about 33%, while EPF holds an almost 8% stake, according to data compiled by Bloomberg.
…and who will own what later? Upon the transaction’s completion, the two Malaysian investors will collectively own 70% of MAHB, with Adia and GIP holding the remaining 30%.
Why take Malaysia Airports private? The consortium aims to pursue “sustainable, long-term growth” for the company, which the consortium says will be best achieved when the company goes private. The Khazana-led consortium aims to boost Malaysia Airports’ profitability, upgrade airport infrastructure, enhance passenger service levels and improve airline connectivity, the statement said.
The timeline: If Malaysia Airports accepts the offer, the transaction will be completed in 4Q 2024, according to the statement.
OTHER ADIA NEWS-
Adia backs India’s Go Digit ahead of IPO: The Abu Dhabi Investment Authority (ADIA) signed on as an anchor backer in Indian ins. startup Go Digit’s IPO, which debuted on India’s local bourse yesterday, TechCrunch reports. The startup raised USD 141 mn from its IPO, with Fidelity, Goldman Sachs, Morgan Stanley, and HSBC also acting as anchor investors.
About Go Digit: Founded by former KPMG executive Kamesh Goyal, Go Digit offers auto, health, travel, and accidental ins. to some 43 mn customers, and aims to streamline ins. processes through mobile self-inspection, claims submission, and service requests. The firm seeks to raise USD 313 mn from its public debut, targeting a valuation of approximately USD 3 bn, 25% lower than its last private valuation of USD 4 bn.
ADIA ❤️ India investments: The Abu Dhabi sovereign wealth fund earlier this week reportedly submitted a non-binding bid for a 75% majority stake in Indian restaurant company Haldiram ’s snacks business, with the potential agreement valuing the company at up to USD 8.5 bn. The bid was made via a consortium led by US alternative investment management firm Blackstone that also includes Singaporean sovereign wealth fund GIC.
