Malaysia close to deal with Dutch company Schipol on airport share

Malaysia close to deal with Dutch company Schipol on airport share

Associated Press, Kuala Lumpur

The Malaysian government is close to sealing a deal to sell a 30 percent stake in Malaysia Airports Holdings Bhd. to Dutch company Schiphol, a source said Tuesday.

But the Dec. 31 deadline to sign the agreement may have to be extended due to the festive season holidays, the source told Down Jones Newswires.

The price tag has been finalized, the source said, but declined to give a specific figure, saying only that it was between 2.60 ringgit (US$0.68) and 3 ringgit ($0.79).

The Malaysian government in August signed a memorandum of understanding to sell a 30 percent stake in the company to Schiphol International BV in two tranches of 20 percent and 10 percent. Schiphol runs the Schiphol Airport in Amsterdam.

Based on Malaysia Airports' paid-up capital of 1.10 billion shares, the 30 percent stake would cost Schiphol between 858 million ringgit ($225 million) and 990 million ringgit ($260 million), or a 18 percent to 29 percent premium over its current share price.

The Malaysian government owns about 72 percent of Malaysia airports via investment arm Khazanah Nasional Bhd. and the Finance Ministry. The government also holds one golden share in the company, which gives it veto rights over major decisions.

Malaysia Airports operates the country's 37 airports, including the flagship Kuala Lumpur International Airport, which it hopes Schiphol's expertise will help turn into a regional hub.

The source said most of the details of the sale have been finalized, but suggested the Dec. 31 deadline may not be met because of the festive season holidays.