Malaysia Airports launches $306 mln share sale-term sheet

KUALA LUMPUR, March 3 (Reuters) - Malaysia Airports Holdings Bhd (MAHB) started its $306-million share sale on Monday, seeking to raise funds to buy a 40 percent stake in Istanbul's Sabiha Gokcen airport from India's GMR Group.

The company is offering 124.05 million new shares, or 10 percent of its existing share capital, to institutional investors in an indicative price range of 7.70 ringgit to 8.10 ringgit per share, according to a term sheet seen by Reuters.

The market price for its existing shares ended unchanged at 8.38 ringgit on Monday, prior to the start of the new share sale, which is being conducted through a bookbuilding process.

Buyers will be entitled to get a dividend of not less than 5.78 sen per share, subject to MAHB's shareholder approval at its annual general meeting on March 20. The lock-up period for investors is 90 days, the term sheet showed.

The new shares will list on the local bourse on March. 12, it added.

MAHB, which counts Malaysian state investor Khazanah KHAZA.UL as one of its major shareholders, has been expanding offshore and now has interests in four foreign airports, including two in India, one in the Maldives and Sabiha Gokcen in Turkey, where it already has a 20 percent stake.

CIMB, Credit Suisse and JP Morgan are the joint bookrunners for the share sale. (Reporting By Yantoultra Ngui; Editing by Greg Mahlich)