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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, according to a bourse disclosure (pdf). An offer notice was submitted to Malaysia Airports by AmInvestment Bank, which is acting on behalf of the consortium on Friday.
The breakdown: The consortium is offering to pay 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 push 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.
OTHER M&A NEWS-
Abu Dhabi National Hotels’ (ADNH) catering arm ADNH Catering plans to increase its stake in Compass Group’s Saudi catering business Compass Arabia to 50% from 30% as part of its regional expansion strategy, according to an ADX disclosure (pdf).
REMEMBER- The company is looking to tap further into the KSA market: ADNH Catering CEO Clive Cowley said last month that the company’s next chapter will focus on “expanding [ADNH Catering’s] operations in the UAE and Saudi Arabia.” ADNH Catering previously expressed interest in expanding in the Saudi Eastern Province, including Jeddah and Riyadh, where the company currently operates via ADNH Compass, which used to be a JV with Compass Group. ADNH Compass became a wholly-owned subsidiary of ADNH after it acquired Compass’ entire 50% stake in the company back in March.
