Khazanah, EPF Eye Malaysia Airports Buyout Amid $3.7B Valuation

Khazanah and EPF consider privatizing Malaysia Airports, reflecting a 41% share price surge and a $3.7 billion valuation.

By Athena Xu

5/15, 02:45 EDT

Key Takeaway

  • Khazanah and EPF are considering taking Malaysia Airports private, amid a 41% surge in shares, valuing the company at $3.7 billion.
  • The potential privatization reflects growing investor confidence and strategic importance of Malaysia Airports in the aviation sector.
  • Malaysia Airports manages 39 airports, including an international one in Turkey, highlighting its significant role in global connectivity.

Potential Privatization Move

Malaysia's sovereign wealth fund, Khazanah Nasional Bhd., alongside the Employees Provident Fund (EPF), is reportedly considering a significant financial maneuver involving Malaysia Airports Holdings Bhd. This development comes as trading of the airport operator's shares was halted on Wednesday, sparking interest and speculation among investors and market observers. Khazanah, holding approximately 33% of Malaysia Airports, and EPF, with a close to 8% stake, are said to be in the early stages of exploring a deal to take the airport operator private. These discussions are being facilitated with the assistance of a financial adviser, though the identities of the parties involved have not been disclosed due to the private nature of the proceedings.

Market Impact and Company Valuation

The news of potential privatization talks has emerged in a year where Malaysia Airports' shares have witnessed a notable increase, surging 41% and elevating the company's market valuation to 17.4 billion ringgit ($3.7 billion). This uptick in share price reflects a growing investor confidence and places the company in a strong position amidst ongoing considerations for its future ownership structure. The significant rise in market value underscores the strategic importance of Malaysia Airports within the aviation and transportation sector, not only within Malaysia but also in its international ventures.

Strategic Assets and Operations

Malaysia Airports is a key player in the aviation industry, with its inception dating back to 1991. The company's operational portfolio is extensive, managing 39 airports across Malaysia, which includes both international and domestic airports. Additionally, Malaysia Airports extends its reach beyond national borders with the management of an international airport in Turkey. This broad spectrum of assets highlights the company's critical role in facilitating air travel and cargo services, contributing to Malaysia's connectivity and economic development on a global scale.