21-6-2024 (KUALA LUMPUR) Global Infrastructure Partners (GIP), the investment firm slated to own a 30% stake in Malaysia Airports Holdings Bhd (MAHB) alongside the Abu Dhabi Investment Authority, has clarified that New York City-based investment firm BlackRock is not involved in the move to privatize the airport operator. This statement comes despite BlackRock’s agreement to acquire GIP in January.
According to Bernama, Phil Iley, GIP’s head of transport, stated that BlackRock’s acquisition of the company would only be completed in the third quarter of 2024. “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 said.
The privatization exercise, facilitated through a consortium called the Gateway Development Alliance (GDA), will see Khazanah Nasional Bhd holding a 40% stake in MAHB, followed by the Employees Provident Fund (EPF) with 30%.
Several quarters have urged the Malaysian government to scrap the deal due to GIP’s ties with BlackRock, which has been accused of “profiteering from genocide” through its stakes in US defence firms allegedly manufacturing weapons used by Israel. However, Investment, Trade and Industry Minister Tengku Zafrul Aziz clarified that BlackRock is a listed company not owned by Israelis, while Khazanah stated that GIP, as its consortium partner, would not have a hand in the management of MAHB once the deal is finalized.
On Monday, a finance ministry official, quoted by Channel News Asia, stated that the government could no longer renege on the privatization plan as a formal offer had been made.
Iley, who is also a GDA director, expressed confidence in MAHB’s ability to regain its market standing and improve its network connections, noting that the airport operator had underperformed in recent years. He stated that MAHB would benefit from the privatization exercise through higher investments to improve services, increase airline connectivity, and upgrade infrastructure.
“GIP 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,” Iley said.
He also mentioned the possibility of re-listing MAHB on Bursa Malaysia in the future if the privatization exercise proves successful, emphasizing GIP’s commitment to “taking MAHB to the next level” as a long-term investor typically investing in airports for more than 10 years.
Iley highlighted plans to increase the number of flights in the Penang, Langkawi, Kuching, and Kota Kinabalu airports and expressed GIP’s expectation to be a technical partner in the GDA consortium, vowing to offer MAHB “as much operational support and assistance as it needs” despite being a minority shareholder.
Additionally, Iley pointed out that GIP had acquired a stake in Florida-based aviation services firm Signature Aviation in 2021, which operates more than 200 private aviation facilities in 27 countries, making it the “largest fixed-base operator network in the world.”
