GLOBAL Infrastructure Partners (GIP) has reiterated that BlackRock Inc has not in any way been involved in the move to privatise Malaysia Airports Holdings Bhd (MAHB) through Gateway Development Alliance (GDA).

This is despite the New York City-based investment firm being in the process of acquiring GIP in a multi-billion-dollar deal that is expected to be completed in the third quarter of 2024.

In a written reply to Bernama, Phil Iley, head of transport at GIP and a director of GDA said BlackRock recognises GIP’s expertise in infrastructure investing.

“After the transaction closes, GIP’s existing leadership team will retain full control and responsibility for the strategic direction and operation of GIP and the companies in which we have invested,” he stated.

GIP is a leading infrastructure investor that manages US$112 bil (RM527.5 bil) of assets on behalf of its investors, which comprises approximately 500 institutional investors globally.

For context, on May 15, GDA and its shareholders announced a pre-conditional voluntary offer to acquire all the shares in MAHB not already owned by the Consortium, at an offer price of RM11.00 per share which is equivalent to RM18.4 bil.

The Consortium is led by two Malaysian Government Linked Investment Companies, namely Khazanah Nasional Bhd via its wholly owned subsidiary UEM Group Bhd and the Employees Provident Fund (EPF).

The GDA consortium in a statement on May 15 said upon completion of the offer, Khazanah’s stake in MAHB will increase to 40% from 33.2% and EPF from 7.9% to 30%.

Collectively, Malaysian investors would own 70% of MAHB while Abu Dhabi Investment Authority (ADIA) and GIP will hold the remaining 30%.

According to Iley, GIP specialises in investing, managing and operating some of the largest and most complex infrastructure businesses in the world, including several airports.

“GIP is convinced of the potential of both MAHB and Malaysia, and believes that GDA can grow MAHB through initiatives that will enhance the passenger experience, increase airline connectivity and upgrade the airports’ infrastructure,” he remarked.

“It is confident that these initiatives will provide lasting economic benefits, not only for MAHB and its stakeholders, but also for Malaysia’s economy and its citizens.”

According to Iley, GDA’s offer is an opportunity to apply its expertise to deliver improvements at MAHB that will benefit all stakeholders including passengers, airlines, staff and the broader set of businesses that interact with MAHB’s airports, ranging from tourism to manufacturing.

“By making a substantial investment in MAHB, we and our partners are strongly incentivised to ensure that it achieves the ambitions we have for it,” he stressed.

“In addition, although we will only be a minority shareholder, we expect to play the role of a technical partner in GDA and bring MAHB as much operational support and assistance as it needs.

“We and our partners are optimistic and are committed to putting in the work to take MAHB to the next level.”

Earlier in May, critics of the privatisation plan, who were against GIP’s participation, had accused BlackRock of “profiteering from genocide” through its stakes in US defence companies that allegedly manufacture weapons used by Israel.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz had since then come to defend the decision, stressing that BlackRock is a listed company that is not owned by Israelis.

Separately, Khazanah, in a written response to Channel News Asia (CNA), noted that the BlackRock-tied GIP was picked after a robust review of potential technical partners, including global airport operators. - June 21, 2024 

https://focusmalaysia.my/report-blackrock-not-involved-in-mahb-privatisation-exercise-says-gip/