KUALA LUMPUR: Global Infrastructure Partners is not expected to interfere with the daily operations of Malaysia Airports Holdings Bhd (MAHB) after acquiring a 30 per cent stake in it together with Abu Dhabi Investment Authority (ADIA), an analyst said.
Khazanah Nasional Bhd and the Employees Provident Fund (EPF) will continue to play a significant role in MAHB's operations and strategic decisions as they still hold the majority stake.
Economic analyst Dr Mohamad Khair Afham said this includes strategic decisions such as the appointments of the chairman and top management team.
This is given that the two government-linked investment companies still hold the majority stake of 70 per cent in the Gateway Development Alliance (GDA) consortium that is taking over MAHB.
As key investment entities, GIP and ADIA- along with Khazanah and the EPF - will instead provide the necessary capital and strategic expertise to modernise infrastructure and improve the quality of services at MAHB, he said.
"Foreign investors such as GIP and ADIA are expected to contribute to improving airport operations through their international expertise, especially in world-class airport management," he told Berita Harian.
Mohamad Khair said the takeover also aims to leverage Malaysia's strategic position in the rapidly growing Southeast Asian aviation market.
"MAHB plays a crucial role as a gateway for trade and tourism into Malaysia. The takeover also provides an opportunity to inject significant capital into MAHB, which is needed to modernise airports like Kuala Lumpur International Airport, improve service quality, and increase passenger capacity.
"Khazanah and the EPF believe this move will help Malaysia strengthen its position as a regional aviation hub, thereby stimulating the tourism sector and supporting the country's economic growth."
From an economic perspective, he added, the acquisition brings various benefits to the country. "Firstly, it boosts foreign investor confidence in Malaysia's economic growth prospects, particularly in the aviation sector. The presence of international investors like GIP and ADIA demonstrates that Malaysia remains an attractive destination for major infrastructure investments.
"Secondly, this acquisition reduces MAHB's dependence on the government for capital, as private investors are willing to provide the necessary funding for renewal and operational enhancements," he said.
Mohamad Khair said in the long term, the improvement in airport quality will stimulate tourism, create new air routes, and positively impact the gross domestic product through increased tourists and international business activity.
Three days ago, BlackRock Inc announced the completion of the acquisition of GIP.
In a statement, BlackRock said the merger creates an industry leader in infrastructure encompassing equity, debt, and solutions, thereby providing a range of expertise and exposure to the infrastructure sector in both developed and emerging markets.
Previously, issues arose regarding the sale of stakes in MAHB to BlackRock.
Prime Minister Datuk Seri Anwar Ibrahim reportedly said GIP was chosen as a partner after strict conditions were met, including agreeing to take only a minority stake and agreeing to the chairman and CEO being Malaysian.
In June, GIP stressed that BlackRock had never been involved in any transaction related to the restructuring of interests in MAHB through the GDA consortium and GIP will retain its existing management team post completion of the acquisition by Blackrock.
The GDA consortium is led by Malaysian entities, Khazanah and the EPF as 70 per cent shareholders with GIP and ADIA holding the minority stake of 30 per cent.
On May 25, GDA announced a voluntary conditional offer to buy all shares in MAHB not already owned by the consortium at an offer price of RM 11 per share, totalling RM18.4 billion.
MIDF Research said the offer price of RM11 per share represents an 18 per cent premium over its estimated fair value of RM9.32 for MAHB shares.
UOB Kay Hian Research suggested that investors accept the privatisation offer, given the opportunity to monetise their shares at a premium valuation.
Similarly, Kenanga Research, tagging a target price of RM11 per share, recommended investors to "accept the offer."