MAHB prices placement shares at RM7.90 each to raise RM980m

by **Cals** Tue 04 Mar 2014, 13:45

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Tuesday, 04 March 2014 13:39

KUALA LUMPUR (Mar 4): Malaysia Airports Holdings Bhd (MAHB) has priced its 124.05 million new shares under the group's planned private placement at RM7.90 each.

This translates into gross proceeds of some RM980 million for the airport operator, according to MAHB's statement to Bursa Malaysia today.

MAHB had first announced the private placement in December last year. According to MAHB's statement to Bursa Malaysia then, the placement proceeds would finance MAHB's proposed acquisition of a 40% stake in Turkey-based airport operator Istanbul Sabiha Gokcen (ISG) from India's GMR group.

MAHB is also buying 40% of hospitality and food and beverage (F&B) entity LGM Havalimani from GMR. Both cash transactions were collectively valued at EUR225 million (RM1.01 billion).

ISG owns the concession to manage the Sabiha Airport while LGM has been tasked to undertake hotel and F&B operations at the airport.

Today, MAHB said "the issue price (of the placement shares) represents a discount of approximately 4.3% to the 5-day volume weighted average price of MAHB shares up to and including 3 March 2014 of RM8.2579 and a discount of approximately 5.7% to the closing market price of MAHB shares on 3 March 2014 of RM8.38."

CIMB Investment Bank Bhd, JP Morgan Securities (M) Sdn Bhd and Credit Suisse (Singapore) Ltd are the joint placement agents for the share placement.