Global Infrastructure Partners (GIP) was selected following the company’s agreement to retain the appointment of a Malaysian citizen as Chairman and Chief Executive Officer (CEO) of Malaysia Airports Holdings Bhd (MAHB), and the collective majority ownership by the state, said Prime Minister Datuk Seri Anwar Ibrahim.
He said, apart from GP, other parties did not agree with the terms set by Khazanah Nasional Bhd and the Employees Provident Fund (EPF).
According to Anwar, Khazanah and EPF set strict conditions that would see Malaysia’s collective ownership in MAHB increase to 70 percent from the current 41 percent once the restructuring of the airport operator is completed.
“Khazanah reported that, when opened for management consideration, 145 interested companies were considered and ultimately five qualified.
“Other companies interested, it wants management rights. This means its CEO or it decides. This condition is not accepted (by Khazanah and EPF). That’s why GIP was chosen,” he said during Question Time in the Parliament today.
Anwar responded to a supplementary question by Wan Ahmad Fayhsal Wan Ahmad Kamal (PN-Machang) who wanted to know about the merit of selecting GIP to assist in the development of MAHB.
Earlier, responding to a question from Datuk Mohd Shahar Abdullah (BN-Paya Besar) who wanted to know about the decision to sell MAHB shares to GIP, Anwar said the issue of sale did not arise as majority ownership remained with the country’s players.
“This is different from the narrative outside. The narrative outside seems like a sale but it’s not. Foreign companies have about 27 percent and this is what GIP and the Abu Dhabi Investment Authority (ADIA) have taken over.
“Do we have a sale involving airports? No. This only involves management and MAHB is simply a company managing airports. Airports remain owned by the Malaysian government,” said Anwar.
He also noted the urgent need for a RM10 billion investment resulting from the share acquisition for the development of MAHB.
This also allows Khazanah and EPF to invest their funds in other critical sectors needing focus.
GIP has also collaborated with EPF and other Malaysian companies since 2012.
GIP brings decades of experience in managing and operating airports through its investments in Sydney Airport, London Gatwick Airport, Edinburgh Airport, Signature Aviation, and previously, London City Airport.
BlackRock, on the other hand, has interests in Bursa Malaysia shares worth RM247 billion and RM7.9 billion in Malaysian government and corporate bonds.
