31 January, 2012
Malaysia Airports Holdings Bhd (MAHB) has proposed private placement of up to 110 million new ordinary shares of RM1 each, representing 10% of the company’s issued and paid-up share capital, primarily to part finance the additional capital expenditure (capex) incurred for the enhancements to its Kuala Lumpur International Airport (klia2) low-cost carrier terminal.
According to MAHB, assuming that the issue price is fixed at RM5.44 per placement share and MAHB issues 110 million new shares, it is expecting to raise gross proceeds of approximately RM598.4mil.
Of that amount, RM590mil will be utilised within 12 months to part finance the additional capex for klia2 while the remaining RM8.4mil will be used within the three months to defray expenses relating to the proposed private placement.
In its note to Bursa Malaysia yesterday, MAHB said the actual proceeds to be raised from the proposed private placement would be dependent on the actual issue price and number of placement shares to be issued.
It added that in the event that a lesser amount of proceeds was raised from the proposed private placement, the proposed utilisation would reduce proportionately.
“After due consideration of the various methods of fund raising as well as the capital structure of the company, the board is of the view that the proposed private placement is the most appropriate mean of raising funds in an expeditious manner to part finance the additional capex.”
MAHB said this would allow the company to meet its obligations in connection with the construction of klia2 while, at the same time, maintained the fast track nature of the construction of the low-cost carrier terminal, which is scheduled to be completed in April 2013.
Late last year, MAHB announced that klia2 would need to nearly double its original size and cost nearly twice its initial costing of RM2bil to between RM3.6bil and RM3.9bil. The increase in size and cost would cater to an expected 45 million passengers.
The original size of the two-storey terminal building was 150,000 sq m but, to cater to government requirement to segregate domestic and international passengers, it has been upgraded to nine storeys on a 257,000 sq m site.
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