MAHB raises RM980 million in new equity via placement

Malaysia Airports Holdings Berhad (“MAHB”) is pleased to announce the successful completion of a placement of 124 million new shares via an accelerated book-build exercise raising

approximately RM980 million.

The issue price was fixed at RM7.90 per placement share, which represents a discount of approximately 4.3% to the 5-day volume weighted average price of MAHB shares up to and including 3 March 2014 of RM8.2579. The total number of shares to be issued represents 10% of the issued and paid-up share capital of MAHB as at 3 March 2014. The proceeds raised will be utilised to fund the acquisition of 40% stakes in Istanbul Sabiha Gökçen Uluslararasi Havalimani Yatirim Yapim Ve Isletme A.S. (“Istanbul Sabiha Gökçen International Airport”) and LGM Havalimani Isletmeleri Ticaret Ve Turizm A.S. respectively.

The placement was well subscribed, with the demand being 2.7 times in excess of the 124 million new shares available on offer. Furthermore, the placement attracted interest from a broad base of both domestic and foreign institutional investors, as well as new institutional investors. The deal also saw a healthy mix of reputable long-only and hedge funds, with foreign institutional demand coming in for approximately half of the deal.

MAHB is delighted by investors’ overwhelming response to the private placement and their show of support. With the proceeds raised, MAHB will be able to increase its stake in the Istanbul Sabiha Gökçen International Airport to 60%, making it the single-largest shareholder in one of the fastest growing airport in the world. MAHB is raising its stake in the airport to diversify its earnings and sees long-term prospects in the airport.

Analysts are upbeat on MAHB’s move to increase its stake in the Istanbul Sabiha Gökçen International Airport, as the Turkish airport is seen as a strong asset for the company and the move would benefit it in the long run.

Source:- Malaysia Airports