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Adia-backed bidders close in on Malaysia Airports buy-out

International Airport in Kuala Lumpur. The GDA consortium plans to upgrade infrastructure and improve airline connectivity to support growth Alamy via Reuters
International Airport in Kuala Lumpur. The GDA consortium plans to upgrade infrastructure and improve airline connectivity to support growth
  • 95% shareholder acceptance
  • Operator valued at $4.2bn
  • Hargreaves Lansdown bid progressing

A $4.2 billion bid to buy out Malaysia Airports backed by the Abu Dhabi Investment Authority (Adia), the emirate’s biggest sovereign wealth fund, has moved a step closer.

Shareholder acceptance of the bid is above 95 percent.

The offer is by a consortium called the Gateway Development Alliance (GDA), which is led by Malaysia’s sovereign wealth fund, Khazanah Nasional, and backed by Adia and Global Infrastructure Partners, an American investment fund.

Khazanah Nasional is already the largest shareholder in Malaysia Airports (MAHB).

The consortium launched its offer in May last year to acquire all remaining shares in the company at 11 ringgit ($2.50) per share. This values the airport operator, which manages most of Malaysia’s airports, at around $4.2 billion.

Once acceptance hits 90 percent, under Bursa Malaysia rules, GDA could have compulsorily acquired the remaining shares and delisted MAHB.

“Bursa Securities will suspend the trading of the securities of MAHB commencing from February 20,” Malaysia Airports said in a statement.

Upon completion, Khazanah’s stake will rise from 33 percent to 40 percent. The Employees Provident Fund (EPF), Malaysia’s state retirement fund, will hold 30 percent, up from an existing 8 percent. Collectively, the Malaysian entities will own 70 percent of MAHB. 

Adia and Global Infrastructure Partners will hold the remaining 30 percent, the consortium said in a statement.

The group plans to upgrade infrastructure, enhance passenger service and improve airline connectivity to support passenger and freight growth.

Meanwhile, Adia’s joint bid to purchase the British wealth management platform Hargreaves Lansdown is making progress. 

In August a consortium of Adia, the London-based investment company CVC Advisers and Nordic Capital, a private equity firm based in Copenhagen, Denmark, agreed a deal to buy Hargreaves Lansdown for £5.4 billion ($6.9 billion)

In September banks including Barclays, HSBC, Lloyds Bank Corporate Markets and Mizuho agreed to offer the bidding consortium a multicurrency revolving credit facility after completion of the acquisition. 

The banks increased that facility by £45 million towards the end of 2024 and on Monday the lenders amended the commitment again, offering an additional £10 million.

Hargreaves Lansdown is listed on the London Stock Exchange and its share price has grown by about a third in the last year on news of the potential takeover.