KUALA LUMPUR (Dec 22): Bank Negara Malaysia (BNM) has approved Malaysia Airports Holdings Bhd's (MAHB) bridging facility for its acquisition of the remaining 40% stake in Istanbul Sabiha Gokcen International Airport (ISG) owned by Limak Group for €285 million.
In a filing with Bursa Malaysia today, the airport operator said central bank has approved the application by MAHB on the proposed acquisition and its bridging facility.
MAHB had proposed a rights issue of 274.8 million shares to raise RM1.3 billion, which will mainly be used to fund the acquisition.
MAHB also said it is required to notify BNM on the drawdown date of the borrowings of €285 million.
“The approval will be considered as void if the borrowings are used for any other purpose than to acquire the 40% equity stake in ISG and LGMHavalimani Isletmeleri Ticaret ve Turizm (LGM) from their current shareholders and if the said borrowings are not drawn down within 12 months from the date of BNM’s approval letter,” it said.
ISG manages airport and terminal operations in Sabiha Airport.
The approval is also subject to MAHB acquiring BNM’s approval before MAHB makes repayment of the said borrowings and prior to any amendments of the terms of the borrowings and the utilisation of the borrowings.
MAHB also announced that the undersecretariat for Defence Industries of Turkey had, vide its letter dated Dec 19, approved the transfer of the acquisition shares from the sellers to MACities under the sale and purchase agreement.
The approval is subject to the appointment of a member determined by the Undersecretariat to the Board of Directors of ISG during the term of the Implementation Agreement.
"The board of MAHB is currently considering this condition of the Undersecretariat’s approval," it said.