MAHB plans RM1.32b rights issue for Turkish airports

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KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB) has proposed a 1-for-5 rights issue to raise RM1.32 billion to fund the acquisition of the remaining 40% stake in Turkish airport ventures, Istanbul Sabiha Gökçen Uluslararasi Havalimani Yatirim Yapim Ve Isletme AS and LGM Havalimani Isletmeleri Ticaret Ve Turizm AS.

In a filing with Bursa Malaysia yesterday, MAHB said the purchase consideration for the stake in Istanbul Sabiha Gokcen airport is €285 million (RM1.18 billion).

MAHB said the balance of the proceeds, about RM80 million, will serve as general working capital and the remaining RM60.9 million will be used for estimated fees and expenses for the corporate exercise.

The airport operator expects the rights issue to be completed in the first quarter of 2015.

MAHB shares closed unchanged at RM7.08 yesterday, with 663,100 shares changing hands, giving it a market capitalisation of RM9.73 billion.

 

This article first appeared in The Edge Financial Daily, on November 11, 2014.