Acceptance Condition of Offer Reduced To 85% To Trigger Index Fund Acceptances and Accelerate Completion

Closing date revised to 4 February: MAHB shareholders who are yet to accept the offer are urged to act now

KUALA LUMPUR, MALAYSIA – Media OutReach Newswire – 20 January 2025 –Gateway Development Alliance Sdn Bhd (“GDA”) and its shareholders (collectively, the “Consortium”) have reduced the acceptance condition of its offer to 85% of MAHB’s total issued shares. This is the level at which GDA expects MAHB to be removed from MSCI¹ and other indices, thereby triggering acceptances from index funds for the shares they control that are yet to be tendered into the offer.

Having already received acceptances totaling 86.5%, GDA shortly expects to declare the offer unconditional and remains confident that total acceptances will exceed 90% and that MAHB will be delisted from Bursa Malaysia. GDA wishes to remind shareholders who are yet to accept the offer that there will be reduced liquidity once MAHB is removed from the indices and that they run the risk of holding unlisted shares.

Concurrently, the Consortium has revised the closing date of the offer to 4 February 2025, (the last day the offer can become unconditional) and declared that its offer price of RM11.00 is final and will not be revised further. The offer price, payable wholly in cash shortly after the offer is declared unconditional, provides shareholders a substantial 44% premium to MAHB’s share price one year ago (19 January 2024) of RM7.64.

The Consortium reiterates its view that MAHB’s operational and financial underperformance will continue if it remains listed and that the transformation of MAHB is best undertaken as a private entity, supported by strategic and financial investors able to take a long-term approach to decision-making and capital investment.

This transformation, which will benefit wider Malaysia, requires substantial capital expenditure to both remediate MAHB’s ageing and failing infrastructure, as well as to support expansion. Against a decade-long backdrop of lagging performance versus regional peers, shareholders should have no doubt about the challenges that MAHB faces and that its ability to pay dividends in the future will be greatly reduced by this upcoming capital expenditure requirement.

Shareholders who are yet to accept the offer should act now before the closing date of 4 February.

Hashtag: #GatewayDevelopmentAlliance

The issuer is solely responsible for the content of this announcement.