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BlackRock will not take part in Malaysia Airports privatisation, GIP states

International Facilities Partners (GIP) stated its buyer BlackRock will not be involved in privatising Malaysia Airports after criticism in Muslimmajority Malaysia over the U.S. company's alleged ties to Israel.

GIP, Malaysian sovereign wealth fund Khazanah Nasional and others become part of a consortium that has used to take over Malaysia Airport (MAHB) in a privatisation deal that would value the airport operator at $3.9 billion.

The strategy has actually come under criticism and protests from some ruling celebration and opposition legislators in Malaysia, a staunch supporter of the Palestinians, over GIP's ties to BlackRock's. substantial investments in Israel, which is fighting a war. versus the militant Palestinian Hamas group in Gaza.

MAHB's planned privatisation is the latest focus on demonstrations. in Malaysia, following boycott projects against such Western. brand names as McDonald's and Starbucks over the war. in Gaza.

GIP said its existing management group will keep full. control and responsibility for the strategic direction and. operation of GIP and the companies in which we have invested. after its acquisition by BlackRock, state news agency Bernama. reported on Friday, pointing out a written reply from GIP head of. transportation Phil Iley.

A GIP representative confirmed the Bernama report. Khazanah. did not instantly react to requests for remark.

Iley stated the firm would offer MAHB with as much. operational assistance and help as required in spite of being a. minority shareholder.

If we succeed with our change, we would really. much consider re-listing MAHB on the Malaysian stock exchange in. the future, he wrote.

Khazanah has said GIP would not work with staff to directly. handle MAHB, while Malaysian Prime Minister Anwar Ibrahim has. described claims that 25% of MAHB would be owned by a. pro-Zionist business as unwarranted, without naming the company,. Bernama reported.

Under the offer GIP and the Abu Dhabi Investment Authority. would own 30% of MAHB, while the majority stake would be held by. Khazanah and the Staff Members Provident Fund, Malaysia's largest. pension body. The fund did not respond to a request for comment. on GIP's declaration.

BlackRock's $12.5 billion acquisition of GIP is expected to. be finished in the 3rd quarter.

MAHB handles 39 airports across Malaysia and an. worldwide airport in Turkey.

(source: Reuters)