— MUHAMAD SHAHRIL ROSLI/The Star
PETALING JAYA: Shareholders of Malaysia Airports Holdings Bhd
(MAHB) are encouraged to accept the offer to take the airport management company private, as it presents an opportunity to monetise their shares.
Brokerages noted that the RM11 buyout offer for MAHB’s shares was attractive, presenting premium valuation to the fair values they ascribe to the company.
MIDF Research said the offer price represented about an 18% premium over its fair value of RM9.32 for MAHB’s shares.
“If the conditions for the privatisation offer are satisfied or waived, we recommend that investors accept the buyout offer of RM11 per share, as it reflects an 18% premium over our fair value,” the research house wrote in its report.
Similarly, UOB Kay Hian (UOBKH) Research said: “We suggest that investors accept the privatisation offer given the opportunities to monetise shares with a premium valuation.”
It had a “hold” call on MAHB, with a target price of RM10.21, up from the previous target of RM9.86, as it rolled over its valuation to 2025.
“We also note that our current valuation may not fully account for other earnings-accretive catalysts including the future monetisation of its extensive landbank around the Kuala Lumpur International Airport (KLIA), redevelopment of Subang Airport as well as the potential extension of the concession period for SGIA (in Istanbul, Turkiye),” UOBKH Research said.
According to Kenanga Research, three out of four conditions for the MAHB privatisation offer had been fulfilled.
Once the fourth condition is satisfied, a final offer is expected to be announced.
A consortium, comprising Khazanah Nasional Bhd, the Employees Provident Fund (EPF), New York-based Global Infrastructure Partners, and Abu Dhabi Investment Authority, is buying out MAHB shares not already owned, translating to a 67.01% stake for RM12.3bil or RM11 per share cash.
The proposed offer is expected to be completed by the fourth quarter of this year.
The consortium did not intend to maintain the listing status of MAHB.
Tagging its target price at RM11 for MAHB share, Kenanga Research recommended “accept offer”.
Meanwhile, CIMB Research maintained its “hold” call on MAHB, with a target price of RM10.30, up from the previous RM9.50.
“There could be an upside to our target price to RM11 per share based on the proposed pre-conditional voluntary takeover offer by Khazanah and the EPF-led consortium,” the research house said.
“We gathered that the proposal is now pending Malaysian Aviation Commission approvals and the timeline for the offer is up to Nov 15, 2024,” it added.
On MAHB’s prospects, CIMB Research said it saw a stronger-than-expected passenger traffic movement, further extension in visa relaxation for foreign travellers by the government, and the possibility of a stake sale in the 100%-owned Turkiye ISG airport concession as potential rerating catalysts.
The potential overhang over its privatisation exercise, on the other hand, would be a potential downside risk for the stock.
“We expect MAHB to maintain a healthy growth momentum in the second half of 2024, especially with the easing of visa requirements for both Chinese and Malaysian passengers,” CIMB Research said.
It noted that China had extended its visa-free policy for Malaysians until the end of 2025, while the Malaysian government had also extended the reciprocal visa-free policy for Chinese tourists to the country until the end of 2026.
“Moreover, opening access to its electronic-gate (e-gate) system to more nationalities will help address congestion and facilitate tourists’ arrivals at KLIA,” CIMB Research said, noting the Immigration Department has also extended the e-gate access to 63 nationalities, including China and India, since June 1, 2024.
“The group is also working on a terminal decongestion plan in ISG to improve passenger enhancement experience, especially ahead of the current busy summer travel period in Turkiye,” it added.
In 1H24, MAHB saw its earning surge 146% year-on-year to RM395.79mil, or 22 sen a share, as revenue increased by 20% to RM2.73bil.
