MAHB gets RM980m to fund acquisitions

By P Vijian

KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB) has raised RM980 million via a private placement exercise to fund its acquisition plans in Turkish airports.

The corporate exercise involves the placement of 124 million new shares priced at RM7.90 per share, the airport operator said in a statement issued yesterday.

The proceeds is to fund the acquisition of 40% stakes in Istanbul Sabiha Gökçen International Airport and similar stake in LGM Havalimani Isletmeleri Ticaret Ve Turizm AS.

MAHB will increase its stake in Sabiha Gökçen Airport to 60%, making it the single-largest shareholder.

“MAHB is raising its stake in the airport to diversify its earnings and sees long-term prospects in the airport,” said the statement.

The new shares are scheduled to be listed on March 12, 2014.

MAHB is buying both the stakes from India’s conglomerate GMR Infrastructure Ltd. LGM is involved in the operations of the airport hotel and food and beverages services.

The issue price was fixed at RM7.90 per placement share, which represents a discount of 4.3% to the five-day volume weighted average price of MAHB shares up to and including March 3, 2014, of RM8.30.

The total number of shares to be issued represents 10% of the issued and paid-up share capital of MAHB as at March 3, 2014, added the statement.

CIMB Investment Bank Bhd is the adviser for the deal, while CIMB Investment Bank Bhd, Credit Suisse (Singapore) Ltd and JP Morgan Securities (M) Sdn Bhd act as joint placement agents.

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MAHB gets RM980m to fund acquisitions