Analysts: Accept the RM11 takeover offer for MAHB shares


ANALYSTS urge Malaysia Airports Holdings Bhd (MAHB) shareholders to consider accepting the take-over offer of RM11 per share, as a consortium led by Khazanah Nasional Bhd and Employees Provident Fund (EPF) moves to privatise the airport operator. 

In a recent exchange filing, the consortium, named Gateway Development Alliance Sdn Bhd, unveiled its intention to acquire the remaining shares of MAHB at RM11 per share. 

Upon completion of the transaction, Khazanah’s stake in MAHB will increase from 33.2% to 40%, while EPF’s will rise from 7.9% to 30%, resulting in a combined Malaysian ownership of 70%. 

MIDF Amanah Investment Bank Bhd advises shareholders to consider the RM11 per share offer, emphasising the anticipated significant capital expenditures required for airport expansion, which might delay earnings realisation due to uncertainties in the regulatory landscape. 

Similarly, Hong Leong Investment Bank Bhd (HLIB Research) suggests that shareholders interested in liquidating their investments should accept the RM11 offer despite the potential for upside beyond its current target price (TP) of RM10.25. 

HLIB Research highlights MAHB’s substantial recovery in passenger traffic, particularly in Malaysia, where air travel demand is expected to remain robust post-pandemic, supported by increasing flight connectivity and frequencies, notably by AirAsia Group. 

The recent extension of visa-free travel to China until Dec 31, 2025, is anticipated to further bolster passenger traffic from China, which has been a significant contributor to Kuala Lumpur International Airport’s international traffic. 

In Turkey, MAHB’s Istanbul operations have surpassed pre-pandemic levels, with record-high passenger numbers and profitability since 2023, indicating continued growth prospects for Istanbul’s airport traffic. 

Kenanga Investment Bank Bhd, aligning its TP with the RM11 offer, has upgraded its recommendation to ‘Accept Offer’ from ‘Market Perform’. 

The research house rationalises the valuation discount compared to its peer Airport of Thailand, citing Malaysia’s comparatively smaller tourism revenues as a key factor. 

Overall, the consensus among analysts underscores the favourable terms of the RM11 per share offer and the positive outlook for MAHB’s future growth under private ownership, supported by robust air travel demand and strategic developments in key markets. 

  • This article first appeared in The Malaysian Reserve weekly print edition