PETALING JAYA: A decision by the Malaysian Aviation Commission (Mavcom) to grant its preliminary approval of the proposed privatisation of Malaysia Airports Holdings Bhd
(MAHB) is a positive step towards improving the overall performance of airports in the country, analysts say.
Last week, Mavcom granted the approval under the Malaysian Aviation Commission Act 2015.
Mavcom said the proposed merger does not violate Malaysian aviation laws, provided the joint offerors enter into a valid and binding shareholders’ agreement.
The decision is effective for one year from the date it becomes final, the regulator said.
The deal involves Gateway Development Alliance Sdn Bhd, Pantai Panorama Sdn Bhd, Kwasa Aktif Sdn Bhd and GIP Aurea Pte Ltd in a proposed privatisation of MAHB.
Gateway Development Alliance is made up of Khazanah Nasional Bhd, the Employees Provident Fund Board and Global Infrastructure Management LLC
The joint offerors plan to acquire the remaining 67.01% of MAHB shares it does not own at a cash offer price of RM11 per share.
CIMB Research said there is potential for MAHB’s shares to rise toward the RM11 mark following the development.
“Overall, Mavcom’s decision is a positive step toward’s MAHB’s privatisation. We maintain our earnings forecast and ‘hold’ rating on the stock with a target price of RM10.30, still based on a 22 times 2024 forward price-earnings ratio (PER),” the research house said.
This was in line with its two-year post-pandemic average PER and the proposed pre-conditional voluntary takeover offer by Khazanah Nasional Bhd and the Employees Provident Fund–led consortium, the research house said.
Mavcom said even if the deal results in a substantial lessening of competition, it may be allowed if it brings significant economic benefits or social advantages that outweigh the competition concerns.
