Schiphol stake in Malaysia Airports abandoned

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Malaysia'a Ministry of Finance has called off the proposed sale of a stake in Malaysia Airports Holdings to Schiphol International due to the Dutch airport operator's apparent reluctance to take up the entire 30% stake offered. TRW understands the events of September 11 and the effects on its own privatisation plan prompted Schiphol to seek a smaller stake which was not acceptable to the government.

In a statement to the Kuala Lumpur Stock Exchange, Malaysia Airports said it had received information from the government that it and Schiphol had mutually agreed not to proceed with the proposed sale and purchase of 30% in the company. However, Malaysia Airports does not preclude the possibility of a strategic collaboration with other airport operators in future should the opportunity present "significant value proposition" to the company.

It is now likely Malaysia Airports will seek other ways of using international airport expertise, on a project-by-project basis, via strategic partnerships, or by consultants. Meanwhile the airport group will dispose of its shareholding in the adjacent Sepang formula one racing circuit to the Ministry of Finance.