Abu Dhabi Investment Authority (ADIA), the UAE’s largest sovereign wealth fund, is part of a consortium that has announced a pre-conditional voluntary offer to acquire all the shares in Malaysia Airports Holdings Berhad (MAHB), in a deal worth $3.9 billion. 

The Gateway Development Alliance and its shareholders, led by Malaysia’s sovereign wealth fund Khazanah Nasional Berhad (Khazanah) and pension fund provider Employees Provident Fund (EPF), have made an offer price of 11 Malaysian Ringgit ($2.33) per share. Funds managed by Global Infrastructure Partners are also part of the consortium.

The offer price at RM11 per share implies an equity value of RM18.4 billion ($3.91 billion), the consortium said in a statement.

Upon completion, Khazanah will increase its ownership in MAHB from 33.2% to 40% and EPF from 7.9% to 30%. Collectively, Malaysian investors would own 70% of MAHB. ADIA and GIP will hold the remaining 30%. 

The Government of Malaysia will retain special share rights in MAHB, and the Chairman and CEO will continue to be Malaysian citizens.

The consortium said the move was part of a growth plan to support passenger and freight growth in the country and improve airline connectivity, which was “best achieved by MAHB as a private entity.”

The move was also part of a long-term investment strategy by the consortium to grow airport capacity throughout MAHB’s network of airports in Malaysia and Türkiye.

“MAHB’s airport network serves some of the world’s fastest growing aviation markets, which are benefiting from regional economic growth, increased air travel affordability and shifts in consumer spending. This positive backdrop underpins our participation in the consortium, which combines strong local partners with extensive international expertise,” Khadem Alremeithi, Executive Director of the Infrastructure Department of ADIA, said.

The consortium further confirmed no layoffs would occur because of the offer.

The offer for MAHB is subject to certain pre-conditions and if such conditions are met, MAHB’s shares would de-list from Bursa Malaysia upon completion of the offer, which is estimated to occur in the Q4 2024.

(Reporting by Bindu Rai, editing by Seban Scaria)