Malaysia Airports Holdings Berhad agrees to acquire remaining 40% equity interest of Istanbul’s airport

Malaysia Airports Holdings Berhad (“MAHB”) is pleased to announce that it has exercised its right of first refusal to acquire from the Limak Group the remaining 40% interest in ISG and LGM that it does not already own today.
MAHB will shortly enter into a share purchase agreement to acquire the Limak Group’s 40% interest in ISG and LGM for an aggregate cash consideration of up to €285 million.
MAHB, Limak and GMR had first formed a 20-40-40 consortium in 2008 for the development of the green field airport with the capacity of 25 million passengers. MAHB was the designated airport operator partner.
MAHB, earlier this year, increased its interest in ISG and LGM from 20% to 60% when it acquired a 40% stake from GMR and obtained joint control with the Limak Group. MAHB will be the sole operator of Sabiha Airport and will own 100% of ISG and LGM on successful close of the transaction which is expected in early 2015.
MAHB is currently deliberating on the most appropriate funding structure for the acquisition and further details on the proposed funding will be announced once finalized. Notwithstanding this, MAHB will secure the necessary bridging facilities and/or drawdown its existing facilities to finance the acquisitions if needed.
Datuk Badlisham Bin Ghazali, Managing Director of MAHB said, “The successful acquisition of ISG and LGM is a significant milestone for MAHB. This acquisition gives MAHB access to an attractive offshore asset and will enhance MAHB’s presence in Turkey. Furthermore, it is testament to our confidence in the continued great performance of our Turkish management team in ISG and our commitment to this strategic investment. Going forward we expect that the combined operations of ISG and LGM together with MAHB will be further enhanced.”
Source: Malaysian Airports Holdings