Malaysia Airports Holdings buys the remaining stake in ISG and LGMStaff writer ▼ | October 27, 2014
Malaysia Airports Holdings Berhad (MAHB) has exercised its right of first refusal (ROFR) to acquire from the Limak Group the remaining 40% interest in ISG and LGM that it does not already own.
Asia An aggregate cash consideration of up to EUR285 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 finalised. Notwithstanding this, MAHB will secure the necessary bridging facilities and/or drawdown its existing facilities to finance the acquisitions if needed. ■