Malaysia, Abu Dhabi & GIP Consortium Gateway Development Alliance to Buy Malaysia Airports Holding at $3.9 Billion Valuation Representing a 15.2% Premium of Share Price Over Last 3 Months, Malaysia Group to Own 70% and Abu Dhabi & GIP to Own 30%, Consortium of 4 Institutional Investors are Malaysia Sovereign Wealth Fund Khazanah Nasiona Subsidiary UEM, Malaysia Employees Provident Fund, Abu Dhabi Investment Authority & Global Infrastructure Partners
17th May 2024 | Hong Kong
Malaysia, Abu Dhabi & GIP consortium Gateway Development Alliance has announced to buy Malaysia Airports Holding at $3.9 billion (MYR 18.4 billion) valuation, representing a 15.2% premium of share price over the last 3 months. The consortium of 4 institutional investors are Malaysia sovereign wealth fund Khazanah Nasiona subsidiary UEM, Malaysia Employees Provident Fund (EPF), Abu Dhabi Investment Authority (ADIA) & Global Infrastructure Partners (GIP). The Malaysia group will own 70% and Abu Dhabi & GIP will own 30% of Malaysia Airports Holding. Announcement (15/5/24): “Gateway Development Alliance and its shareholders (together the “Consortium”), have today announced a pre-conditional voluntary offer to acquire all the shares in Malaysia Airports Holdings Berhad (“MAHB“) not already owned by the Consortium, at an Offer price of RM11.00 per share (the “Offer”). As at 14 May 2024, being the last practicable date prior to this announcement, the Consortium and its parent companies in aggregate own 41.1% of MAHB’s issued share capital. The Consortium is led by two Malaysian Government Linked Investment Companies – Khazanah Nasional Berhad (“Khazanah”) via its wholly owned subsidiary UEM Group Berhad (“UEMG”), and the Employees Provident Fund (“EPF”). The Consortium’s shareholders also comprise a wholly owned subsidiary of the Abu Dhabi Investment Authority (“ADIA”) and funds managed by Global Infrastructure Partners (“GIP”), one of the world’s premier infrastructure investors and an experienced airport owner and manager. Upon full completion of the Offer, Khazanah will be increasing its ownership in MAHB from 33.2% to 40% and EPF from 7.9% to 30%. Collectively, Malaysian investors would own 70% of MAHB. ADIA and GIP will hold the remaining 30%. The Government of Malaysia will retain special share rights in MAHB and the Chairman and CEO will continue to be Malaysian citizens. The Consortium aims to position MAHB for long-term sustainable growth. Focusing on the maintenance and upgrade of airport infrastructure, enhancing passenger service levels and improving airline connectivity will support passenger and freight growth. This in turn will provide lasting economic benefits, not only for MAHB and its stakeholders, but also for the industrial and tourism sectors in Malaysia and Türkiye … … The making of a formal offer for MAHB is subject to certain pre-conditions and, when made, will be subject to the Consortium owning at least 90% of MAHB’s issued share capital. If such conditions are met, it is expected that MAHB’s shares would de-list from Bursa Malaysia upon completion of the Offer, which is estimated to occur in the fourth quarter of this year. The Offer price of RM11.00 implies an equity value of RM18.4 billion, which translates to a price-to-earnings ratio of 37.7x MAHB’s audited consolidated earnings per share for the financial year ended 31 December 2023. The Offer price represents a 15.2% premium to the prevailing three-month VWAP of RM9.55 per share and also implies a 49.5% year to date (“YTD“) increase based on the closing price of RM7.36 per share on 29 December 2023, in comparison to the 10.4% YTD performance of the benchmark index FTSE Bursa Malaysia KLCI up to the date prior to announcement of the Offer. If, on or after the date of this announcement and prior to completion of the Offer, any dividend, distribution or other return of value is declared, made or paid by MAHB, the Offer price shall be reduced accordingly. In such circumstances, MAHB shareholders would be entitled to retain any such dividend, distribution or other return of value declared, made or paid.”
” Malaysia, Abu Dhabi & GIP Consortium Gateway Development Alliance to Buy Malaysia Airports Holding at $3.9 Billion Valuation Representing a 15.2% Premium of Share Price Over Last 3 Months, Malaysia Group to Own 70% and Abu Dhabi & GIP to Own 30%, Consortium of 4 Institutional Investors are Malaysia Sovereign Wealth Fund Khazanah Nasiona Subsidiary UEM, Malaysia Employees Provident Fund, Abu Dhabi Investment Authority & Global Infrastructure Partners “
Dato’ Amirul Feisal Wan Zahir, Managing Director of Khazanah: “Malaysia is strategically well-located in the fast-growing Southeast Asian aviation market and has the potential to strengthen its long-haul and regional network. 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, Chief Executive Officer of EPF: “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. We look forward to the success of this strategic partnership by delivering best-in-class airport experience for the flying public, partner airlines and MAHB employees. We expect this investment to bring positive benefits to EPF’s members and the public, thereby contributing significantly to Malaysia’s sustainable growth agenda.”
Khadem Alremeithi, Executive Director of the Infrastructure Department of ADIA: “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.”
Bayo Ogunlesi, Chairman and Chief Executive Officer of GIP: “We are delighted to partner with Khazanah, EPF and ADIA, with whom we have strong and productive strategic relationships, as part of this offer for MAHB. 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. We look forward to working with our partners to build a bright future for Malaysia, MAHB and all stakeholders.”
Malaysia, Abu Dhabi & GIP Consortium Gateway Development Alliance to Buy Malaysia Airports Holding at $3.9 Billion Valuation Representing a 15.2% Premium of Share Price Over Last 3 Months, Malaysia Group to Own 70% and Abu Dhabi & GIP to Own 30%, Consortium of 4 Institutional Investors are Malaysia Sovereign Wealth Fund Khazanah Nasiona Subsidiary UEM, Malaysia Employees Provident Fund, Abu Dhabi Investment Authority & Global Infrastructure Partners
About Khazanah Nasional Berhad
Khazanah Nasional Berhad (Khazanah) is Malaysia’s sovereign wealth fund, with a realisable asset value of more than RM120 billion. Khazanah invests across all levels of the Malaysian economy and has a longstanding track record as an active shareholder of various Malaysian infrastructure and aviation assets. Beyond generating sustainable returns, Khazanah plays a crucial role in developing the country, driven by its strategy of Advancing Malaysia.
UEM Group Berhad (a wholly owned subsidiary of Khazanah) owns a 100% equity interest in Pantai Panorama Sdn Bhd, one of the Joint Offerors.
About the Employees Provident Fund
The Employees Provident Fund (EPF) is Malaysia’s premier retirement savings fund, helping its members achieve adequate savings for a comfortable retirement. This is in line with EPF’s vision to help members achieve a better future and its mission to safeguard members’ savings and deliver excellent services. The EPF has evolved significantly from a transaction-centric to a professional fund management organisation with a strong focus on retirement security. The EPF is guided by a robust and professional governance framework when making investment decisions. It continues to play a catalytic role in the nation’s economic growth and seeks to cultivate a savings and investment culture among its members to improve the country’s financial literacy level.
EPF owns 100% equity interest in Kwasa Aktif Sdn Bhd, one of the Joint Offerors.
About the Abu Dhabi Investment Authority
Established in 1976, the Abu Dhabi Investment Authority (ADIA) is a globally-diversified investment institution that prudently invests funds on behalf of the Government of Abu Dhabi through a strategy focused on long-term value creation. For more information, visit https://www.adia.ae.
ADIA and GIP collectively will, at the time of completion of the Offer, own 100% equity interest in GIP Aurea Pte Ltd, one of the Joint Offerors.
About Global Infrastructure Partners
Global Infrastructure Partners (GIP) is a leading infrastructure investor that specializes in investing in, owning and operating some of the largest and most complex assets across the energy, transport, digital infrastructure and water and waste management sectors. Headquartered in New York, GIP has offices in Brisbane, Dallas, Hong Kong, London, Melbourne, Mumbai, Singapore, Stamford and Sydney. GIP has approximately $112 billion in assets under management. Our portfolio companies have combined annual revenues of approximately $73 billion and employ over 115,000 people. We believe that our focus on real infrastructure assets, combined with our deep proprietary origination network and comprehensive operational expertise, enables us to be responsible stewards of our investors’ capital and to create positive economic impact for communities. For more information, visit www.global-infra.com.
GIP and ADIA collectively will, at the time of completion of the Offer, own 100% equity interest in GIP Aurea Pte Ltd, one of the Joint Offerors.
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