KUCHING: Analysts are negative on the announcement of TAV Holdings Airport’s (TAV) share purchase agreement with Limak Holding (Limak) for 40 per cent of the Istanbul Sabiha Gokcen (ISG) as they believe TAV is not an ideal partner for Malaysia Airports Holdings Bhd (MAHB) in ISG.
At closing yesterday, MAHB’s shares dropped 26 sen or 3.41 per cent, with 3.35 million share traded, following the announcement of the agreement between TAV and Limak.
CIMB Investment Bank Bhd’s research arm (CIMB Research) in a report, explained; ISG owns the concession to operate the Sabiha Gokcen airport (SAW) until 2030.
However, it noted, this transaction is subject to the right of first refusal (ROFR) granted to MAHB, which currently owns the remaining 60 per cent stake in ISG.
“This development is potentially negative for minority shareholders of MAHB, because if MAHB decides to exercise the ROFR, it may have to raise equity with a value of up to RM1.2 billion, and enlarge the share base by at least 11 per cent,” it highlighted.