1. INTRODUCTION

The Board of Directors of Malaysia Airports Holdings Berhad (“MAHB” or “the Company”) is pleased to announce that İstanbul Sabiha Gökçen Uluslararası Havalimanı Yatırım Yapım ve İşletme A.Ş. (“ISG”), a wholly-owned subsidiary of the MAHB Group (“the Group”) incorporated and operated in the Republic of Türkiye, has on 28 December 2022 executed an amendment to the Implementation Agreement pertaining to Force Majeure related reliefs granted by the Presidency of Defence Industries of Türkiye (“SSB”) for the COVID-19 period in favour of ISG (“FM Relief”).

2. INFORMATION ON THE FM RELIEF 

SSB had earlier vide its letters dated 28 December 2020 and 27 December 2021 granted deferment of payments for the annual Utilisation Fees which, under the Implementation Agreement, were to be paid to SSB on 7 January 2021 and 7 January 2022, respectively (“Deferred Amount”). 

The FM Relief was formalised on 28 December 2022 through the amendment of the Implementation Agreement between ISG and SSB. As part of the FM Relief, SSB has granted a reduction on the Utilisation Fees taking into consideration the COVID-19 impact, to be applied on the Deferred Amount. The remaining balance of the Deferred Amount shall be paid not later than 31 December 2025, subject to interest of 6.524% per annum. 

3. FINANCIAL EFFECTS

The FM Relief is expected to contribute positively to the earnings and net assets of the Group.  

4. APPROVAL REQUIRED

The FM Relief is not subject to the approval of the shareholders of the Company or any regulatory authorities.  

5. INTEREST OF DIRECTORS AND MAJOR SHAREHOLDERS AND PERSONS CONNECTED TO THEM 

None of the Directors and/or the substantial shareholders of the Company and/or persons connected with them have any interest, direct or indirect in the FM Relief.

6. DIRECTORS STATEMENT

The Board of Directors of the Company is of the opinion that the acceptance of the FM Relief and execution of the amendment to the Implementation Agreement is in the best interest of the Group.

This announcement is dated 28 December 2022.