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PAC should review MAHB takeover before deal finalised, says Mas Ermieyati

KUALA LUMPUR: The Public Accounts Committee (PAC) is set to investigate the management of airports, including the proposed acquisition of Malaysia Airports Holdings Bhd (MAHB).

PAC chairman Datuk Mas Ermieyati Samsudin said the matter should be reviewed in its proceedings before the deal is finalised in ensuring transparency.

Mas Ermieyati, who is also Masjid Tanah member of parliament, said the proceeding would not interfere with MAHB's operations, as the company can continue to function as usual while the proceedings are ongoing.

"I believe the (MAHB) board can still operate and provide direction to uphold good governance," she said when contacted.

The proceedings are expected to take place in early February, once the Dewan Rakyat session reconvenes.

However, she did not specify the duration of the proceedings, noting that it would depend on the eventual outcome.

"That is why I have requested a proper evaluation of the fundraising options, if required.

"If privatisation is deemed the best course of action, it will allow ample time for various parties to submit proposals," she said.

Her comments followed a statement by all five of MAHB's independent directors in a circular, asserting that there were no compelling reasons for shareholders to accept the offer.

They argued that the proposal failed to reflect MAHB's full potential, highlighting its positive financial trajectory, growth strategy, and potential value accretion if it remains publicly listed.

This stance contrasted with the recommendation from independent adviser Hong Leong Investment Bank Bhd (HLIB), which urged MAHB shareholders to accept the offer.

HLIB described the offer as reasonable, citing MAHB's prolonged suppressed share price, despite it being below HLIB's independent fair valuation of RM12.61 to RM13.71 per share.

On Saturday, despite the rejection, Gateway Development Alliance Sdn Bhd (GDA)—the consortium proposing to privatise MAHB—remained resolute in its RM11 per share offer price.

GDA comprises the Employees Provident Fund (EPF), Khazanah Nasional Bhd-backed UEM Group Bhd, the Abu Dhabi Investment Authority, and BlackRock-owned Global Infrastructure Partners (GIP).

The consortium argued that the RM11 per share offer represents an attractive proposition for MAHB shareholders, offering a 49.5 per cent year-to-date (YTD) premium relative to MAHB's closing price of RM7.36 on 29 December 2023.

"This compares with the 10.0 per cent YTD performance of the benchmark index FTSE Bursa Malaysia KLCI, where the offer price premium is five times the KLCI's performance," it said.

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