THE Dewan Ulamak PAS Pusat has urged the government to reconsider the acquisition of Malaysia Airports Holdings Bhd (MAHB) by a consortium and address concerns about undervalued share prices and MAHB’s future prospects, including extended concessions and KLIA capacity expansion.
“The concerns over this acquisition are not only about the valuation of shares, which are considered lower than the price that should be offered, but also the positive future prospects of MAHB must be taken into account.
“This includes the extension of MAHB’s concession for the operation agreement covering 39 airports from 2034 until Feb 11, 2069, as well as the expansion of KLIA’s capacity, which is nearly double the current 75 million passengers.
“Are all these factors critically considered by the government? The Dewan Ulamak PAS Pusat strongly hopes that the government will not act recklessly on this matter,” Dewan Ulamak PAS Pusat chief Datuk Ahmad Yahaya said in a statement today.
They cautioned against rushing into selling strategic assets without thorough consideration.
The PAS Ulamak said public doubts have grown due to differing opinions within MAHB’s Board of Directors. The group recommends presenting the matter to the Public Accounts Committee for transparency and rational deliberation before the Jan 8, 2025 deadline.
The proposed takeover of MAHB by a consortium led by Khazanah Nasional, EPF, ADIA, and GIP has sparked debate among stakeholders as the Jan 8, 2025, deadline approaches.
Hong Leong Investment Bank (HLIB), the independent financial advisor, considers the RM11 per share offer “reasonable” but not “fair,” citing a 12.77% to 19.77% discount to MAHB’s intrinsic value, estimated at RM12.61 to RM13.71 per share.
HLIB recommended acceptance due to strategic risks and the absence of competing bids.
However, MAHB’s non-interested directors strongly oppose the offer, arguing it undervalues MAHB’s strong asset portfolio and future growth prospects. They urged shareholders to reject the bid, creating a critical decision for investors.
In a statement reflecting their dissent, they noted, “After careful and assiduous examination, consideration of the terms and conditions of the offer as contained in the offer document, and taking into consideration the evaluation and recommendation by HLIB.
“The non-interested directors recommend that holders reject the offer, as they do not concur with HLIB’s recommendation for holders to accept the offer.”
The directors also raised concerns about the implications of privatisation on MAHB’s governance, operations and long-term objectives.
They pointed to the lack of clarity regarding the consortium’s plans and their potential impact on stakeholders. — Dec 25, 2024
