GIP operates separately from BlackRock – MoF

KUALA LUMPUR: Global Infrastructure Partners (GIP) will operate separately from BlackRock after the company is taken over.

Berita Harian reports, according to the Ministry of Finance (MoF), GIP’s management will also maintain full control and responsibility over its strategic direction and the companies it invests in.

“This means that GIP will continue to operate separately from BlackRock.

“Abu Dhabi Investment Authority (ADIA) together with GIP will also have a 30 percent minority stake in MAHB.

“All important decisions regarding MAHB will only be implemented based on the mutual agreement of the consortium members,” he said in a written response posted on the Parliament website.

The MoF answered a question from Datuk Seri Ismail Sabri Yaakob (BN-Bera) who wanted clarification on the status of the sale of MAHB shares to a consortium that also involved an Israeli-related company, Blackrock.

The MoF also insisted that the transaction for the acquisition of MAHB did not involve BlackRock at all.

MAHB’s takeover offer is a commercial transaction with discussions conducted by representatives of the consortium not involving BlackRock.

In terms of investment, Anwar said, MAHB only spent RM1.4 billion in the past five years compared to RM6.6 billion for Thailand and RM12 billion for Indonesia.

On that basis, he said the consortium led by Khazanah and the EPF will have a majority of 70 percent joint holding in MAHB.

He explained that the offer to take over and privatize MAHB facilitates reforms to be carried out at an immediate pace.

He said, the remaining 30 percent stake under the consortium involved will be owned by ADIA and GIP who play a role through their experience and technical expertise in the management of international airport operations.