Kuala Lumpur: Malaysia Airports Holdings Bhd (MAHB) is close to privatisation, with the deal now almost sealed as it has reached 86.5% approvals, a foreign bank analyst said.
He said the 90% limit was set because the proponents wanted to delist the company.
“This was the level that was most meaningful, although the acceptance level can be lowered at any time,” he told Bernama.
Despite this, the deduction will remain within the acquisition code, he said.
The right of Gateway Development Alliance (GDA) and its shareholders (Consortium) to reduce the acceptance condition is clearly stated in clause 2.2(iii) of the offer document dated December 6, 2024.
GDA complies with the Securities Commission Malaysia’s takeover, merger and compulsory acquisition regulations. This includes revising the MAHB offer threshold for shareholder approval downwards to 85%, as announced by the Consortium on January 20, 2025, in full compliance with paragraph 6.01 of Note 7 to the Rules on Takeovers, Mergers was conducted. , and compulsory acquisition issued by SC.
This amendment requires that the offer remain open for at least 14 days after announcement, setting the new closing date as February 4, 2025.
Additionally, it allows shareholders who have already accepted the offer to withdraw their acceptance within eight days of the amendment, typically by January 28, 2025.
“It is only a matter of time before MAHB gets delisted as there are not many shares left available for trading.
“Now that the offer is unconditional and stands at 86%, MHB is likely to be delisted from MSCI and other indices, triggering the remaining acceptances from index funds,” said an industry expert.
Index Funds owns approximately 4.0% of MAHB, thus increasing the consortium’s ownership from 86% to 90%, thereby obviating the need to delist MAHB.
The Consortium expects the proposal to be declared unconditional and is confident that total approvals will exceed 90% and MAHB will be delisted from Bursa Malaysia.
He said the delisting should free up more capital, which can flow into other blue chip companies and into other sectors such as data centers and energy transition.
Privatization comes at a critical time as the underinvestment and deteriorating service in MAHB over the past few years is a clear indication that they need a new strategy to turn the group around.
“I believe investors are largely in line with this approach, as evidenced by the high approval level of the deal,” he said.
He believes that the immediate focus for the airport will be to get the Aerotrain operational as soon as possible.
Besides, commercial space reset to increase non-aero revenues is also a priority, he said.
“I believe the consortium needs to formulate a long-term strategy for the airport group to determine appropriate investments and returns for the group,” he said.
He said such changes are expected to improve MAHB’s competitive edge in the regional aviation sector.
With the privatization process nearing completion, the stage is set for MAHB to transform into a more efficient and competitive entity by leveraging the resources and expertise of the consortium. – Bernama
