RM11 MAHB privatisation offer provides immediate gains for investors - CIMB

Investors could also benefit from the joint offerors' resources and vision for sustainable growth, making the proposal attractive, the firm noted in a report today.

"However, Malaysia's long-haul connectivity challenges and the capital investment required for infrastructure upgrades may pose risks to MAHB's organic growth," it added.

Hence, CIMB Securities recommends that investors accept the offer.

On Friday, Khazanah Nasional Bhd, the Employees Provident Fund (EPF), Global Infrastructure Partners (GIP), and Abu Dhabi Investment Authority (ADIA)--collectively referred to as the joint offerors--formally launched a conditional voluntary takeover bid for all remaining shares in MAHB at RM11 per share, valuing the equity at RM18.4 billion.

"The offer is conditional upon achieving 90 per cent shareholder acceptance. The joint offerors collectively hold a 41.2 per cent stake in MAHB.

"If the takeover is successful, the Malaysian members of the consortium will collectively own 70 per cent of MAHB," it said.

The report highlighted that the RM11-per-share offer price represents a 49.5 per cent premium to the last closing price at end-December 2023 and a 10.4 per cent premium to the closing price on May 14, 2024, the last trading day before the pre-conditional offer was announced.

In light of the offer, CIMB Securities has revised MAHB's target price upwards to RM11 from RM10.30.

-- BERNAMA