A group of prominent civil society organizations in Malaysia began protesting against an offer made by an alliance, which includes a company that may be acquired by the American BlackRock, to privatize the Malaysia Airports Holding Company, amid boycott campaigns against some American companies, due to the Israeli aggression on the Gaza Strip.
About 22 organizations issued a joint statement urging the government to reconsider and prevent BlackRock’s participation in the deal worth about $2.6 billion to privatize Malaysia Airports Holdings, saying that BlackRock has ties to Israel.
An alliance led by the Malaysian sovereign wealth fund (Khazanah) and the Employees Retirement Provident Fund announced on May 15 an offer to buy the remaining shares of Malaysia Airports Holdings shares that it does not already own.
The alliance also includes Global Infrastructure Partners, an infrastructure investment management company, and the Abu Dhabi Investment Authority.
BlackRock announced last January that it would buy Global Infrastructure Partners for $12.5 billion, and the acquisition is expected to take place in the third quarter.
In a letter to the management of the Employees Provident Fund yesterday, Thursday, civil society organizations, including the Malaysian Advisory Council for Islamic Organizations and Long Live Palestine-Malaysia, urged the pension fund to end relations with BlackRock.
The company’s privatization plan was also criticized by some representatives in Parliament from the opposition and the ruling party, due to BlackRock’s participation.
The agreement is the latest deal to face protests in Malaysia, a Muslim-majority country in Southeast Asia and a strong supporter of the Palestinians.
Boycott campaigns
Boycott campaigns due to the military campaign carried out by Israel in the Gaza Strip targeted some Western brands in Malaysia and some other Islamic countries, including Starbucks and McDonald’s.
Last month, the Malaysian company QSR Brands, which operates the fast food restaurant chains KFC and Pizza Hut in Southeast Asia, indefinitely postponed plans to float on the local stock exchange, as its business was affected by the boycott campaigns.
On May 17, local media quoted Prime Minister Anwar Ibrahim as saying that reports that 25% of Malaysia Airports Holdings would be owned by a “pro-Zionist” company were baseless without naming the company.
If the deal is completed, Khazanah and the Employees Provident Fund will jointly own 70% of Malaysia Airports, while Global Infrastructure Partners and Abu Dhabi Investment Authority will own the remaining 30%.
Data from the London Stock Exchange Group showed that Malaysia Airports Holdings shares have risen 36% so far this year, giving the company a market value of $3.55 billion.
BlackRock is the largest fund management company in the world. Its website stated that the company, which is headquartered in New York, manages assets worth $9.09 trillion globally as of March 2023.