KUALA LUMPUR – Transport Minister Anthony Loke has told Machang MP Wan Ahmad Fayhsal Wan Ahmad Kamal to stop spreading incorrect information about the proposed privatisation of Malaysia Airports Holdings Bhd (MAHB).
Loke said the opposition lawmaker’s insistence that the government had sold a portion of MAHB shares to foreign entities was untrue, as the proposed privatisation would in fact raise the government’s stakes in MAHB.
“His information is inaccurate. He said we are disposing of it, but we are not. Khazanah Nasional Bhd is not disposing of MAHB. On the contrary, through this proposal, Khazanah and the Employees Provident Fund (EPF) will further increase their stakes in MAHB,” he said.
Loke’s comments were reported by Bernama after the minister chaired a meeting of the National Logistics Task Force in Putrajaya today.
Wan Fayhsal yesterday said MAHB shares were being sold to a pro-Israel company, Global Infrastructure Partners, which is wholly owned by investment firm Blackrock, a major shareholder of weapons firms that supply arms to Israel.
The Perikatan Nasional lawmaker had in March made the same claims in the Dewan Rakyat, which Loke dismissed.
“Until today, he is still talking about us selling (our stake), which is misleading the public,” Loke said today.
Yesterday, MAHB announced its proposed privatisation by Gateway Development Alliance, a consortium led by Khazanah via its wholly owned subsidiary UEM Group Bhd, and EPF, which is offering to acquire all MAHB shares not already owned by the consortium at an offer price of RM11 per share.
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.
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 December 31, 2023.
As of May 14, 2024, the consortium and their respective holding companies collectively own 41.1% of MAHB’s issued shares.
Upon full completion of the offer, Khazanah will be increasing its ownership in MAHB from 33.2% to 40% and in EPF from 7.9% to 30%.
Collectively, Malaysian investors would own 70% of MAHB, while ADIA and GIP would hold the remaining 30%.
At lunch break today, shares of MAHB rose by one sen to RM10.14, with 7.8 million shares transacted.
Loke said the proposed privatisation will boost the company’s efficiency through swift strategic decision-making and facilitate its way forward.
“It was Khazanah’s decision (to propose), not the ministry’s decision. It decided to take MAHB private from the share market. Of course, the ministry is aligned with what Khazanah has proposed.
“When MAHB becomes a fully private entity under Khazanah and the EPF becomes a strategic asset of the government and the country, I am confident that various strategic decisions can be implemented swiftly.” – May 17, 2024