Malaysia Airports Holdings Bhd’s privatisation announcement reflects a growing confidence, especially by foreign investors in local companies’ financial and growth potential. — Picture by Devan ManuelKUALA LUMPUR, May 16 — Malaysia Airports Holdings Bhd’s privatisation announcement reflects a growing confidence, especially by foreign investors in local companies’ financial and growth potential, said an economist.
“I’m sure MAHB’s board of directors and their main shareholders have performed due diligence on the best investment strategy for MAHB. One of the factors to be considered will be the impact of such investments on the national agenda and strategic assets of the nation,” he told Bernama.Yesterday, Gateway Development Alliance and its shareholders announced a pre-conditional voluntary offer to acquire all the shares in MAHB not already owned by the consortium at an offer price of RM11.00 per share.
On full completion of the offer, Khazanah will be increasing its ownership in MAHB from 33.2 per cent to 40 per cent, and EPF from 7.9 per cent to 30 per cent. Meanwhile, Malaysian Economic Association deputy president Professor Dr Yeah Kim Leng said the privatisation will give the company great flexibility to unlock asset values, seek new growth opportunities and respond to new challenges in a fast-changing post-Covid-19 global economic and financial landscape that is reshaping the national and regional airports industry prospects.
“Importantly, given MAHB’s ownership of airports in other countries, it potentially could transform into a major global airport player with the participation of GIP. The bulk of the value creation or 70 per cent will accrue to Khazanah and EPF. “The rationale to take MAHB private appears sound and hopefully the global environment remains stable for the privatised entity to realise its long-term plan,” he added.