I REFER to “Misplaced concerns over MAHB privatisation”.

The letter was in response to “Should MAHB be privatised?” and argued that the concerns over the proposed privatisation of Malaysia Airports Holdings Bhd (MAHB), which operates 39 airports in Malaysia, “are somewhat misplaced”.

According to the writer, “BlackRock has yet to acquire GIP, so why are we jumping the gun?”. With due respect, Global Infrastructure Partners will effectively be owned by BlackRock Inc by the third quarter of 2024. It was BlackRock and GIP themselves who jointly announced in a press release of January 12 that they had entered into an agreement for BlackRock to acquire GIP for total consideration of US$3 billion cash and 12 million shares of BlackRock common stock.

According to the press release, the “transaction is expected to close in the third quarter of 2024 subject to customary regulatory approvals and other closing conditions.” BlackRock Agrees to Acquire GIP.

The writer also argued that BlackRock has sizeable shares in tech giants like Apple, Facebook, and Google, and that BlackRock’s investments in Bursa Malaysia stocks are said to be worth around RM20.5 billion.

Perhaps the writer should explain the difference(s) between shareholding in a company which is publicly listed like Apple Inc. and one which is not. As Saleh Mohammed rightly pointed out, in the latter, there is a “shareholders agreement” which details, among others, board composition and key management positions.

It is the shareholders agreement that will determine the above matters.

Accordingly, the public may not be convinced by public assurances that BlackRock will not have a hand in the management of MAHB when it is taken private.

Will the shareholders agreement be made transparent? How will the agreement be made transparent when it may contain a non-disclosure clause or term?

If the deal to take MAHB is a strategic alliance, then it could be a “strange bedfellows” alliance that has understandably led to concerned civil society organisations and the likes of Pasir Gudang MP Hassan Karim urging the government to reconsider the offer to take MAHB private.

The concerns are not misplaced. Khazanah is owned by the Minister of Finance Inc while EPF members are the country’s workforce that contribute to the retirement fund.

That’s us. – June 11, 2024.

* Hafiz Hassan reads The Malaysian Insight.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.