KUALA LUMPUR – Unity government spokesman Fahmi Fadzil has assured that there are no issues within the unity government over differing opinions regarding Israel-linked firm BlackRock Inc’s potential role in Malaysia Airports Holdings Bhd’s (MAHB) privatisation exercise.
He said this in response to questions about potential unrest within the government after Umno Youth urged Putrajaya to halt the sale of MAHB’s shares to Global Infrastructure Partners (GIP), which is set to be acquired by BlackRock.
“There are no problems. The prime minister himself has said that there’s no issue with criticising or conveying your views when the matter involves policies, so it’s something that can be discussed.
“With the presence of Umno ministers in the cabinet, of course we’ve discussed the matter. As of now, I can say that there are no issues,” Fahmi, who is also communications minister, told reporters after the Sg Bakap by-election candidates’ nomination.
Disclosing that there were previously “some concerns”, he said these worries had been proven baseless, as BlackRock would not directly own shares in MAHB.
This, he said, was because the proposed privatisation move would see shares held by a consortium, with 70% going to sovereign wealth fund Khazanah Nasional Bhd through its wholly owned subsidiary UEM Group Bhd and the Employees Provident Fund.
“We will have a golden share as well as the right and power to determine who will be (MAHB’s) chairman and chief executive officer. A commitment has also been given that staffers in airports under MAHB’s care will not be laid off.
“Strategic decisions still lie with the Malaysian government. Those who are trying to ride on this issue don’t see the importance of us improving the quality of our airports’ services. It’s a very short-sighted approach,” he added.
Yesterday, Umno Youth chief Dr Muhamad Akmal Saleh said the wing leadership had agreed that the federal government should halt the sale of MAHB shares to GIP, even though the proposed plan would see the latter holding only 30% of shares.
Akmal also questioned why Malaysia’s vocal stance against Israel on the international stage was not reflected in decisions made nationally, referring to how BlackRock also owned shares in weapons companies supplying arms to Israel.
The matter was not “just an Islamic issue, but a humanitarian one,” added Akmal, who is also Merlimau assemblyman and a Melaka executive councillor.
The move to take MAHB private was announced on May 15. It will see the Gateway Development Alliance consortium acquire all shares it does not already own at an offer price of RM11 per share, amounting to an equity value of RM18.4 billion.
GIP, which is set to be acquired by New York-based BlackRock by the third quarter of this year, and the Abu Dhabi Investment Authority are the consortium’s shareholders.
Prior to Akmal’s press conference on the matter, GIP’s head of transport, Philip Iley, said BlackRock would not be involved in transactions relating to MAHB’s privatisation.
He added that although it was announced in January that GIP was being acquired by BlackRock, GIP’s existing leadership team would retain full control and responsibility for the strategic direction and operation of the company. – June 22, 2024