Malaysia’s sovereign wealth funds Khazanah and EPF, along with Abu Dhabi Investment Authority (ADIA), are backing Global Infrastructure Partners (GIP) in its bid for Malaysia Airports Holdings Berhad (MAHB) in a deal worth around RM12.3bn (€2.4bn). 

The consortium known as the Gateway Development Alliance, is offering RM11.00 per share to buy all of the remaining shares in MAHB not already owned by them.

Upon completion of the offer, Khazanah’s stake in MAHB will increase to 40% from 33.2%, and EPF from 7.9% to 30%. Collectively, Malaysian investors would own 70% of the business, while ADIA and GIP will hold the remaining 30%.

The Malaysian government will retain special share rights in MAHB.

The consortium said it was committed to positioning MAHB for long-term sustainable growth, including supporting MAHB capital programme to deliver high priority capital projects, such as the aerotrain and the baggage handling system at the Kuala Lumpur International Airport, the nation’s gateway airport.

Amirul Feisal Wan Zahir, managing director of Khazanah said: “We are optimistic that the combined efforts of MAHB’s dedicated employees and the collective expertise of the consortium would catalyse MAHB as a leading international airport operator, and stimulate economic growth through its airport network, in line with Khazanah’s goal of Advancing Malaysia.”

Ahmad Zulqarnain Onn, CEO  of EPF, said: “EPF views this offer as an investment opportunity that aligns with our investment objectives and commitment to bolster domestic investments. As an integral component of the national infrastructure, MAHB plays a vital role as a gateway for trade, tourism, and business activities, contributing significantly to economic development and prosperity.”

Khadem Alremeithi, executive director of the infrastructure department of ADIA, said: “MAHB’s airport network serves some of the world’s fastest growing aviation markets, which are benefiting from regional economic growth, increased air travel affordability and shifts in consumer spending.

“This positive backdrop underpins our participation in the consortium, which combines strong local partners with extensive international expertise.” 

Airport lounge

Source: Pexels

Bayo Ogunlesi, GIP’s chairman and chief executive officer, said: “Given GIP’s substantial expertise in owning and operating airports, together with our partners, we can focus on improving customer service, elevating operational excellence, growing passenger volumes and enhancing employee engagement.”

To read the latest IPE Real Assets magazine click here.