Malaysia Airports sale edges closer as consortium approaches 93% control
Gateway Development Alliance's ambitious bid for Malaysia Airports Holdings has reached a critical milestone, with the consortium now controlling 92.82% of the airport operator's shares, bringing one of Asia's largest airport privatizations closer to completion.
The consortium, led by sovereign wealth fund Khazanah Nasional and including BlackRock's Global Infrastructure Partners and Abu Dhabi Investment Authority (ADIA), launched its takeover bid in May 2023. The offer values Malaysia Airports at 18.4 billion ringgit (US$4.21 billion), with shareholders being offered 11 ringgit per share.
The privatization effort represents a significant shift in Malaysia's aviation infrastructure landscape. Khazanah, which was already Malaysia Airports' largest shareholder before initiating the bid, has positioned the move as part of a broader strategy to enhance the country's airport infrastructure and operational efficiency.
However, the deal has faced unexpected challenges and delays amid political headwinds. Local civil society organizations have mounted protests that linked BlackRock's involvement to broader boycott campaigns related to the Gaza conflict, highlighting the increasing complexity of infrastructure deals in the current geopolitical climate.
The timing of the deal is particularly significant for the aviation sector, as Asia Pacific airports continue their post-pandemic recovery and seek investment for modernization and capacity expansion. Malaysia Airports operates 39 airports across Malaysia, including the flagship Kuala Lumpur International Airport, and holds a stake in Turkey's Istanbul Sabiha Gokcen International Airport.
Khazanah has confirmed the offer will remain open until February 4, 2024, giving remaining shareholders additional time to consider their positions. The high acceptance rate suggests the deal is likely to proceed despite the earlier obstacles, potentially setting a precedent for similar infrastructure privatizations in the region.
