MAHB gets shareholders' nod to buy remaining 40% in Turkish airport

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KUALA LUMPUR (Dec 23): Malaysia Airports Holdings Bhd has received its shareholder’s approval to acquire the 40% collective equity stake in Istanbul Sabiha Gokcen International Airport (ISGIA) and LGM (ISGIA's commercial arm) for a total purchase consideration of €285 million.     

In a statement Tuesday, the airport operator said it received the approval at its Extraordinary General Meeting (EGM) earlier today.

MAHB said the shareholders also approved the Renounceable Rights Issue of up to   275. 78 million new ordinary shares of RM1 each in MAHB on the basis of one Rights Share for every five existing MAHB shares held on an entitlement date to be determined by the Board later.

It said the resolutions bode well for the company as it would strengthen MAHB's presence as an airport operator in Turkey and Europe, and further reinforces MAHB's strategic position as a world class airport operator.

MAHB chairman Tan Sri Dr Wan Abdul Aziz Wan Abdullah said the company was excited about the long term growth prospects in ISGIA as the Turkish aviation market was one of the fastest growing of the world's Top 10 busiest airport cities.

MAHB said the approved Rights Issue would increase the shareholders capital by 20%.

“This will also strengthen MAHB's financial position by improving liquidity and financial flexibility, as well as optimising the Group's capital structure,” it said.