MAHB still profitable, why sell stake, asks Radzi

 

Opposition lawmaker Radzi Jidin says the government should reject Gateway Development Alliance’s bid to acquire a 30% stake in MAHB, citing its strategic assets and strong financial performance.

PETALING JAYA: An opposition lawmaker has called on the government to reject the pre-conditional voluntary offer by Gateway Development Alliance (GDA) and its shareholders to acquire all of the shares in Malaysia Airports Holdings Bhd (MAHB) not already held by the consortium.

Putrajaya MP Radzi Jidin said MAHB was still profitable, reporting RM543 million in profit with a cash balance of RM1.845 billion for 2023, and was recovering well from the Covid-19 pandemic.

He also said the airport operator was technically a strategic national asset as it held concessions for 39 airports which the government had extended until 2069.

“Given the growth potential in the global tourism sector, MAHB has ample room for further profit growth,” he said in a statement today.

“In fact, without a large foreign shareholding, MAHB has demonstrated solid financial performance.

“Significant public funds have (also) been invested in developing this airport network and strengthening MAHB’s position.”

Radzi joins the chorus of opposition MPs and NGOs who have raised concerns following the announcement last Wednesday that Khazanah Nasional Bhd and the Employees Provident Fund are leading GDA to take over and privatise MAHB.

GDA is offering RM11 per share to acquire the remaining 1.12 billion shares not already held by them, in a deal worth over RM12 billion.

While foreign investment is generally welcomed, Radzi said strategic assets like airports should not be sold in haste.

“Logistics assets, particularly in Asia, are highly sought after, given Malaysia’s strategic geographic location,” the Bersatu MP said, adding that there had been a recent unsuccessful attempt by Global Infrastructure Partners (GIP) to buy a stake in MMC Port Holdings.

“In regional examples like Indonesia, Singapore, Thailand, and Vietnam, airport management companies are either fully or predominantly government-owned without large blocks of shares given to foreign companies.

“So what is the rationale behind selling a 30% block of MAHB shares?”

Radzi added that MAHB had extensive experience in managing airports such as Istanbul Sabiha Gökçen International Airport in Turkey.

“If expertise is needed, it can be acquired without selling a 30% block of MAHB shares to foreign companies,” he said.

Radzi also said that selling a stake to GIP, an entity owned by BlackRock, would be “insensitive” given BlackRock’s perceived pro-Israel stance and the situation in Palestine.

“Is there a larger factor at play, causing the government to openly display insensitivity to the situation in Palestine?” he asked. - NST