SUCH is the offer by Pakatan Harapan (PH) Youth which is irritated by Bersatu Youth chief Wan Ahmad Fayhsal Wan Ahmad Kamal‘s lack of understanding on the concept of majority-minority in corporate equity holdings.
The Machang MP has claimed that there was a difference between global fund manager BlackRock’s direct ownership in local listed companies and its indirect holdings in Malaysia Airports Holdings Bhd (MAHB) upon completion of the airports operator’s privatisation exercise.
“The fact is, whether it is 5% or 25% share ownership, it is still minority holding. Minority equity owners have no power to determine the final decisions of any company,” PH Youth information chief Ammar Atan pointed out in a statement.
“In the context of MAHB, the (Malaysian) government will own 70% (through 40% by Khazanah Nacional Bhd and 30% by the Employees Provident Fund [EPF]).
“The (potential) equity holding by GIP (Global Infrastructure Partners which acquisition by BlackRock is expected to be finalised by 3Q 2024) is much lower. The (Malaysian) government’s 70% vote will defeat GIP’s 25% vote.”
Most importantly, Ammar contended that the Madani government will continue to hold the “golden share” in MAHB.
“This means that the government wields the most important power which is the right to veto,” asserted the National Amanah Youth vice-chief.
“In conclusion, BlackRock has long owned minority shares in companies on Bursa Malaysia. Indirect holding through GIP in MAHB is similar.”
On that note, Ammar said PH has accepted GIP’s commitment which has been publicly stated recently that BlackRock will not interfere in GIP’s management and that GIP’s current management will retain full authority over its direction.
“For now, BlackRock has yet to complete its equity purchase in GIP. Therefore, Khazanah Nasional’s decision to cooperate with GIP is not based on BlackRock,” he added. – June 24, 2024
