PN hops on MAHB independent directors' rejection of takeover offer

Summary

• PN and MAHB's independent directors strongly oppose the takeover bid led by Khazanah Nasional and EPF, citing concerns over fairness, governance, and MAHB's future growth potential.

• Despite an advisory circular recommending acceptance of the RM11 per share offer, MAHB's independent directors argue the deal is unfair and undervalues the company, with no compelling reason to sell off shares.

Perikatan Nasional's push against the proposed takeover of Malaysia Airports Holdings Berhad (MAHB) has been revitalised after the company's independent non-executive directors also rejected the offer.

Opposition leader Hamzah Zainudin said PN MPs strongly opposed the share sale and want MAHB to remain a publicly listed company to ensure transparency and good governance.

"As a golden goose and a strategic asset to the country, MAHB must remain Malaysian-owned," he said in a statement today.

The MAHB takeover bid is being orchestrated by a consortium led by Khazanah Nasional and the Employees Provident Fund (EPF), who plan to delist it from Bursa Malaysia.

Previously, politicians had opposed it due to a subsidiary of Israeli military-linked firm Blackrock being part of the consortium.

An independent advice circular published on Dec 20 also had MAHB's independent directors opposing the deal on business grounds.

Hong Leong Investment Bank (HLIB) had concluded that the deal was not fair due to the consortium's RM11 per share offer being lower than the estimated value of shares at between RM12.61 and RM13.71.

However, it found the deal to be reasonable as there were no competing offers, and thus recommended that the directors accept it.

No good reason

Independent non-executive directors Mohamad Husin, Ramanathan Sathiamutty, Cherly Khor, Koe Peng Kang, and Chris Chia disagreed and found the offer unfair and unreasonable.

They argued that there wasn't a good reason to sell off MAHB shares as the company had a clear strategy for growth and should remain publicly listed so that it could raise additional equity.

The Khazanah and EPF-led consortium declined to revise their offer after the independent circular was released.

The Public Accounts Committee said it would be considering the directors' objections when it conducts its probe into the MAHB share sale.

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