KUALA LUMPUR – BlackRock has not in any way been involved in the transaction relating to Malaysia Airports Holdings Bhd’s (MAHB) privatisation through Gateway Development Alliance (GDA), said Global Infrastructure Partners (GIP).
In clarifying this, the head of transport at GIP and a director of GDA, Philip Iley said it was announced that in January 2024 that GIP was being acquired by BlackRock, with the transaction expected to be completed in the third quarter of this year.
Iley said BlackRock recognised 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 said in a written reply to Bernama.
GIP is a leading infrastructure investor that manages US$112 billion (RM527.5 billion) of assets on behalf of its investors, which comprise approximately 500 institutional investors globally.
To recap, GDA and its shareholders announced on May 15 a pre-conditional voluntary offer to acquire all the shares in MAHB not already owned by the consortium at an offer price of RM11 per share, which is equivalent to RM18.4 billion.
The consortium is led by two Malaysian government-linked investment companies: Khazanah Nasional Bhd, via its wholly owned subsidiary UEM Group Bhd, and the Employees Provident Fund.
Iley said GIP specialised 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.
“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,” he added.
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.
“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,” he said.
Iley also highlighted that GIP sought to invest in large infrastructure assets across the globe that provided essential services and supported economic growth.
“MAHB has excellent prospects to regain its market position and to improve its network connections, which have underperformed in recent years,” he added.
Iley noted that GIP was a long-term investor and had typically invested in its airports for over 10 years, and it needed to make long-term investment decisions with their partners to ensure that MAHB’s airports had sufficient capacity for decades to come.
“It is more important to us that we realise the potential across the airport network rather than be driven by a predetermined exit date.
“If we are successful with our transformation, we would very much consider re-listing MAHB on the Malaysian stock exchange in the future,” he added. – June 21, 2024