KUALA LUMPUR (July 3): The plan to privatise Malaysia Airports Holdings Bhd or MAHB (KL:AIRPORT) through a consortium approach is deemed the optimal strategy to safeguard the nation's airport infrastructure and ensure long-term sustainable growth, according to Finance Minister II Datuk Seri Amir Hamzah Azizan.

The consortium approach will allow partner entities to combine efforts to strengthen MAHB, having already made substantial investments in the company to ensure profitable returns.

"This approach is preferable compared to suggestions of appointing a consultant, who would only provide a report without sticking to the game," Amir Hamzah told the Parliament special chambers on Wednesday.

Amir Hamzah also defended the privatisation plan, emphasising that it would provide much-needed financial strength to restore MAHB's operations and enhance its competitiveness.

"If MAHB continues to be listed on the stock exchange, it would be subject to various corporate governance requirements, such as paying dividends to shareholders, which could impose financial constraints even during profitable periods."

In May, Khazanah Nasional Bhd, the Employees Provident Fund (EPF), New York-based Global Infrastructure Partners (GIP), and Abu Dhabi Investment Authority (ADIA) — through a consortium named Gateway Development Alliance Sdn Bhd (GDA) — announced a conditional voluntary offer to acquire all of the remaining 1.12 billion shares in MAHB not already held by them at RM11 per share, in cash. They also intend to delist MAHB.

Upon completion of the offer, MAHB will be wholly owned by GDA, with Khazanah owning 40%, the EPF 30%, and GIP Aurea Pte Ltd holding the remaining 30%.

GIP Aurea is 83.33% owned by GIP and 16.67% by ADIA, giving GIP an effective 25% stake in GDA, while ADIA would hold a 5% share in the private entity that wholly owns MAHB.

Notably, MAHB’s share price has not come close to its offer price of RM11 since the announcement of the privatisation. MAHB shares hit a high, closing at RM10.44 on May 13, a few days before the privatisation was announced on May 15.

The deal has been in the spotlight recently, as US-based investment company BlackRock, accused of involvement in the Palestinian genocide, is in the process of acquiring GIP.

Amir Hamzah reiterated that the government will retain full control over MAHB in terms of ownership, management and security, emphasising that the accusation of the government selling MAHB shares to foreign investors does not arise.

Additionally, Amir Hamzah said that GIP is expected to exit MAHB after a certain period as an investment fund obligated to provide returns to its investors.

"Several companies have shown interest in forming partnerships with Khazanah and the EPF, with the intention of maintaining their investment in MAHB without exiting. However, our plan is to relist MAHB on the stock exchange once it is financially stable. Therefore, Khazanah and the EPF need to find a partner who shares their objectives," Amir Hamzah added.

At the close of Wednesday, MAHB’s share price settled at RM9.99, valuing the airport operator at RM16.54 billion.