MAHB's Istanbul Sabiha Gokcen inviting investors to grow with the company post COVID-19

By ZAIDI ISHAM ISMAIL
editor@dagangnews.com

KUALA LUMPUR Nov 17 - Malaysia Airports Holdings Bhd's (MAHB) Istanbul Sabiha Gokcen International Airport (ISG) in Turkey is inviting any potential investors to invest as part of its preparation to reap future growth once the COVID-19 pandemic is over.

ISG executive director Mohd Nazli Aziz said the airport owner and operator has received two delayed sale offers for a merger and acquisition but rather than ISG becoming a buyer, it is inviting other parties to invest in ISG.

"We have received offers to work together but rather than we go out and buy stakes in other airports, come and work with us because as a government-linked company we have a long term view," Nazli told reporters at an "In conversation with MAHB" virtual media briefing.

Nazli said investors like and look up to MAHB as it is a full-fledged contractor and infrastructure firm also owning and managing airports in its portfolio.

He added in the foreseeable future, ISG is on a restructuring drive to revcover from the pandemic.

This includes amalgamations of airport operations, forming joint ventures with other parties to manage airports and others.

At its height, ISG handled 36 million passengers in 2019 before passengers dived due to Covid-19.

"But we are confident that ISG will rebound as the Turkish government is very proactive providing vaccination centers even at malls.

He added ISG is also optimistic of receiving more travellers from Malaysia as the country's vaccination certificate is recognised in Europe.

He said the key drivers for ISG include the positive forecast made by the International Aviation Travel Association that world travel had recovered by the first quarter of 2021.

ISG made a loss of 117.1 million euros or a drop of 55.1 percent in 2020 due to the pandemic after being profitable for many years previously.

"We are working hard to be in the black once again by reducing cost aggresively and boosting non-aero revenue such as airport retail and e-commerce of airport retail goods. 

He is optimistic hat ISG will rebound as Istanbul is the third most populated city in Europe with 14.6 million tourists in 2019. 

MAHB is 70 percent owned by institutional investors such as the Employees Provident Fund, Kumpulan  Wang Amanah Pencen and Khazanah Nasional Bhd and others.

MAHB owns and manages 39 airports in Malaysia and also has a presence in Hyderabad Airport in Pakistan.

ISG contributes 25 percent to MAHB's overall revenue.

ISG grew at a CAGR (cumulated average growth rate) of 10.1 percent since 2016 reaching a revenue of 264.8 million euros in 2019 and aspires to be a regional and international hub in Europe. - DagangNews.com