MAHB's success in managing airports may boost its bid to buy Standstead Airport

OSK Research Sdn Bhd said the UK media has reported that the MAHB was the latest suitor to join the bid to buy Stansted Airport for an estimated one billion pounds (RM4.9 billion).

Other bidders are Manchester Airport Group (MAG), which is backed by Australia’s Industry Funds Management, and financial investors TPG, Macquarie and HRL Morrison, it said in a research note today.

Stansted Airport is being forced sold by airport group shareholder BAA after losing a three-year battle with UK competition regulators, barring ownership of two airports, as BAA also owns Heathrow Airport.

Should MAHB win the bid, OSK said, the group might have to raise debt since its current cash pile was not sufficient to finance the one billion pounds acquisition.

However, given its current 54 per cent net gearing, there is some room for additional leverage should its funding needs to grow. Other possible sources of funding that the group can tap on are its Dividend Reinvestment Scheme, which can raise some RM190-RM200 million, assuming a 90 per cent take-up.

OSK has maintained its RM8 fair valuation on MAHB, with its "buy" call on the airport operator also maintained. MAHB is currently trading at RM5.44.