The reason is that the US$100 million (RM478.75 million) sales proceeds could help to pay its debts that are coming due.

CGS-CIMB Securities Sdn Bhd said MAHB is due to repay RM600 million of Islamic Medium-Term Notes (IMTN) on Dec 27, 2024, and to repay its RM1 billion perpetual sukuk bond on Dec 15, 2024.

A further RM500 million of IMTN is due to mature on April 25, 2025.

“Hence, MAHB’s disposal is intended to monetise the asset since it has only received US$6.41 million (RM30.69 million) in dividends from GHIAL since it had invested in the airport during the period of 2008 to 2009,” it said in a note today.

The securities firm also expects MAHB to repatriate the disposal proceeds to Malaysia and use it for capital expenditure, general corporate purposes and to defray the expenses in relation to the disposal.

Meanwhile, Maybank Investment Bank estimates that the proceeds could help MAHB reduce its net gearing from 47% as of the end of the second quarter of 2023 to 41%, whilst the disposal could result in a gain of US$23.7 million (RM113.46 million).

“We maintain our earnings estimates, ‘buy’ call and a discounted cash flow target price of RM7.96 pending completion of this disposal,” it said.

MAHB and its wholly-owned subsidiary, MAHB (Mauritius) Private Ltd, are divesting their entire 11% stake in GHIAL, the holding company that manages Hyderabad International Airport in India to the GMR Group for US$100 million (RM478.75 million).

As at 12.29pm, MAHB shares eased 3 sen or 0.41% to RM7.34, giving it a market capitalisation of RM12.25 billion.