Malaysia Airports Shareholder Expresses Doubt on Takeover Bid

  • ‘Opportunistic’ offer may need to be revised, Northcape says
  • Khazanah, EPF, Abu Dhabi fund, GIP confirmed offer last week

Shares of Malaysia Airports have dropped about 3% since May 14, just before the offer was announced, paring year-to-date gains to 37%.

Photographer: Richard Humphries/Bloomberg
Lock
This article is for subscribers only.

Northcape Capital Ltd. said a bid by major shareholders to take Malaysia Airports Holdings Bhd. private may face opposition due to the low valuation offered.

“They might need to revise the offer,” said Ross Cameron, a portfolio manager at Northcape, which own a 1.7% stake in the airport group. “This offer was opportunistic,” and there is a risk the stakeholders won’t get the 90% threshold needed to delist the company, he said.