Malaysia Airports Holdings Bhd [MAHB] to buy stakes in Turkish firms for RM1b [USD300 million]
KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB) has announced that it will exercise its right of first refusal to acquire a 40 per cent stake each in two Turkish companies worth more than RM1 billion.
The two companies are Istanbul Sabiha Gokcen Uluslararasi Havalimani Yatirim Yapim ve Isletme A.S (ISG) and LGM Havalimani Isletmeleri Ticaret ve Turizm A.S.
MAHB said it will acquire ISG from GMR Infrastructure Ltd and GMR Infrastructure Overseas Ltd (GMRO) for RM705.73 million.
It will also acquire LGM from GMRO and GMR Infrastructure (Global) Ltd for RM302.454 million.
ISG's core business is managing the operations of Sabiha Airport.
LGM's operations include establishing and operating hotels as well as establishing, operating, and leasing out food and beverage facilities and trading at the airport.
MAHB said the proposed acquisitions are part of the group's plans to enhance and diversify its assets and earnings base to improve long-term growth prospects.
"The proposed acquisition will allow MAHB to have majority stakes in ISG and LGM and further strengthen its foothold and influence as an airport operator in Turkey," MAHB told Bursa Malaysia yesterday.
It added the acquisition will be financed via proceeds from a proposed private placement and internally generated funds.
"The proposed private placement entails an issuance of new ordinary shares of RM1 each in MAHB, representing up to 10 per cent of the issued and paid-up share capital of MAHB to third-party investor(s) to be identified and at an issue price to be determined later," the company said.