The ministry said the voluntary offer by the consortium of which EPF is a member to take over all MAHB shares not yet owned at the price of RM11 per share was a new long-term investment by EPF.
“This investment aims to ensure long-term returns by taking into account the stable nature of infrastructure assets that are capable of consistently generating cash flow, as well as the potential for continued growth in the number of passengers.
“This strategy is in line with EPF’s objective as an institutional investor that prioritises sustainable returns for the benefit of members,” the finance ministry said in a written parliamentary reply today.
It was responding to a question by Azman Nasrudin (PN-Padang Serai) about the reason for selling MAHB’s shareholding by EPF at a price of RM5.40-RM7.36 per unit in 2023 and then buying it back at RM11 per unit.
Azman also asked the ministry to state the total amount of losses incurred by the fund as a result of the transaction.
The ministry said all sales activities were carried out with the approval of the internal committee and complied with the fund’s established framework.
“EPF has recorded positive income from active trading activities as well as dividend accumulation throughout its investment in MAHB shares since 1999.
“Overall, since 2014, the total income from MAHB shares has reached more than RM500 million,” it said.
The ministry said the sale of MAHB shares by EPF’s equities fund managers on Bursa Malaysia in 2023 was part of EPF’s active trading strategy to take advantage of share price movements and generate short-term investment income.
MAHB shares were sold at prices ranging from RM5.40 to RM7.36 per unit, generating income totalling RM100.7 million for part of the EPF dividend distribution for the 2023 financial year, the ministry added.
The performance of MAHB’s shares, which outperformed the FBM KLCI by 11.47%, was also a key factor in this strategy, it said.
On the question of the RM11 per share price for the voluntary offer, the ministry said there was a difference between the trading of MAHB shares in the market and the implementation of a voluntary offer on MAHB.
“Share trading, including MAHB shares, is managed by EPF fund managers as well as external fund managers, and involves buying and selling shares at fluctuating market prices based on supply and demand on Bursa Malaysia,” it said.
On the other hand, the voluntary offer by the consortium of which EPF is a member was evaluated and made by a team completely different from the strategic investment team, it said.
The ministry said the mandates of both parties differed, with the main objective of EPF fund managers being to generate profits to ensure that dividend payments can be distributed to EPF members.–FMT
