Friday 29 Mar 2024
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KUALA LUMPUR (Oct 23): Malaysia Airports Holdings Bhd (MAHB) will acquire the remaining 40% stake that it does not own in Sabiha Gökçen International Airport, giving it full control of Istanbul's second-biggest airport.

The airport operator expects to complete the transaction by early 2015.

In a statement today, MAHB said it will “shortly” sign a share purchase agreement (SPA) to acquire Turkish firm Limak Group’s 40% interest in ISG and LGM for up to €285 million (RM1.18 billion) cash.

The consideration is subject to downward adjustments in accordance with the SPA.

MAHB also said it is currently deliberating on the most appropriate funding structure for the acquisition and further details on the proposed funding will be announced once finalised.

“Notwithstanding this, MAHB will secure the necessary bridging facilities and/or drawdown its existing facilities to finance the acquisitions if needed,” it added.

MAHB also gave assurance that the existing management structure of Sabiha Gökçen Airport will not change and the airport will continue to be managed by the existing Turkish leadership team that will report to the ISG Board as usual.

“This acquisition gives MAHB access to an attractive offshore asset and will enhance MAHB’s presence in Turkey. Furthermore, it is testament to our confidence in the continued great performance of our Turkish management team in ISG and our commitment to this strategic investment,” said MAHB managing director Datuk Badlisham Ghazali in the statement.

“Going forward, we expect that the combined operations of ISG and LGM together with MAHB will be further enhanced,” he added.

MAHB, Limak and India’s GMR Group had first formed a 20-40-40 consortium in 2008 for the development of the green field airport, with the capacity to handle up to 25 million passengers per year. MAHB was the designated airport operator partner.

MAHB earlier this year increased its interest in ISG and LGM from 20% to 60% when it acquired a 40% stake from GMR for €225 million and obtained joint control with Limak Group.

Shares of MAHB closed up 3.56% at RM6.69 today, bringing a market capitalisation of RM9.19 billion.

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