In a statement, EPF said it had managed its investments in MAHB for the past 25 years based on a “well-defined framework” and a careful buy-and-sell strategy to ensure optimal returns for its members.
EPF said the recent decision to make a voluntary general offer for MAHB’s shares at RM11 per share as part of the Gateway Development Alliance (GDA) consortium reflects a long-term strategic plan aimed at achieving sustainable growth and returns.
The pension fund said that as an institution committed to good governance, it implements a Chinese Wall policy to ensure that its fund managers do not have access to important non-public information such as acquisition offers that may occur.
The policy stipulates maintaining a strict boundary between teams that have access to material non-public information and teams that deal with the public markets.
Similar to many large institutional investors with Chinese Wall policies, the EPF said it separates teams that handle strategic partnerships or deal with confidential transactions, while a separate team manages investments in public equities.
“This policy serves as an information barrier between different departments within the EPF, preventing the disclosure of material non-public information and maintaining the integrity of its market activities,” it said.
“This ensures that decisions made by fund managers are based solely on publicly available information, avoiding any unfair advantage or insider trading.
“This safeguards the integrity of EPF’s operations and maintains trust in its governance practices,” it added.
EPF has been an MAHB shareholder since Nov 30, 1999, when the company was listed on the main market of Bursa Malaysia at RM2.50 per share.
GDA, the consortium proposing to privatise MAHB, comprises EPF, Khazanah-backed UEM Group Bhd, the Abu Dhabi Investment Authority, and BlackRock-owned Global Infrastructure Partners.
Last week, GDA extended the closing time and date for the acceptance of its MAHB takeover offer by a week to 5pm on Jan 17. The previous deadline was 5pm on Jan 8.
Five MAHB independent or non-interested directors previously said in an advice circular filed with Bursa Malaysia that the RM11 offer was unfair and unreasonable and recommended that shareholders reject it.
They said the offer price of RM11 represented a material discount of RM1.61 to RM2.71, or about 12.77% to 19.77%, of the value of MAHB shares of between RM12.61 and RM13.71, as estimated by Hong Leong Investment Bank.