Global Infrastructure Partners addresses concerns over Malaysia Airports privatization

Global Infrastructure Partners (GIP) has addressed concerns regarding BlackRock's involvement in the privatization of Malaysia Airports. GIP, in collaboration with Khazanah Nasional and other partners, is part of a consortium aiming to acquire Malaysia Airports for US$3.9 billion.

Recent criticism in Malaysia has centered around GIP's connection to BlackRock, particularly its investments in Israel amid the conflict with Hamas in Gaza. However, GIP has emphasized that BlackRock will not play a role in the privatization process and that GIP's leadership will retain control over key decisions post-acquisition.

Furthermore, GIP has committed to supporting Malaysia Airports operationally and potentially relisting the company on the Malaysian stock exchange in the future if transformation efforts prove successful. Khazanah has refuted claims suggesting that a pro-Zionist entity would hold a significant stake in Malaysia Airports.

As per the proposed agreement, GIP and the Abu Dhabi Investment Authority are set to own a 30% share in Malaysia Airports, while majority ownership will rest with Khazanah and the Employees Provident Fund. The finalization of BlackRock's acquisition of GIP for US$12.5 billion is anticipated in the third quarter.

Malaysia Airports, which currently oversees 39 airports in Malaysia and an international airport in Turkey, stands at the center of this significant privatization deal that has sparked debate and scrutiny.

The privatization of Malaysia Airports, led by GIP and its partners, has stirred controversy and raised questions about foreign investments and ownership. Despite the concerns surrounding BlackRock's ties to Israel, GIP has reassured stakeholders of its commitment to the operational success of Malaysia Airports. The future of the company, including the potential for relisting and strategic decision-making, remains a focal point as this acquisition unfolds.