I found these news clips:
"Wee Ka Siong dismissed the Employees Provident Fund's explanation for selling its stake in Malaysia Airport Holdings Berhad (MAHB) at a lower price and repurchasing it at a premium after a short period"
https://www.malaysiakini.com/news/732068
Here is a partial answer to Wee Ka Siong's questions, (and EPF should at least buy me a teh tarik) :
'Recently, MCA President, Datuk Seri Dr Wee Ka Siong questioned as to why EPF had sold off a substantial portion of its MAHB shares in 2023 during the period when stock prices were at a low, only to later repurchase the shares at a higher price in May 2024'.
My Comments :
So it was an open market transaction, the selling and the buy back took place between 2023 and May 2024. The selling took place in 2023 and the buy back happened the following year in May 2024.
There was no way that in 2023, EPF could have known where the share price of MAHB would be even the next morning, let alone a year later in May 2024.
But the question is why did EPF sell the MAHB shares (it does not matter at what price) in 2023 and then decide to buy them back a year later in May 2024? And yes at a higher price?
'Throughout 2023, Wee said that EPF sold MAHB's shares at RM6.74 to RM7.70. He questions who are the persons behind selling MAHB shares, and now are buying back the shares at RM11'.
Obviously in 2023 (around January) EPF's investment department would have advised divesting the MAHB shares because they did not see sufficient prospects (within EPF's portfolio management) to hold on to the MAHB shares at RM6.74 to RM7.70 per share.
(The other question YB Wee should ask is what was the prices at which EPF had bought those MAHB shares? Meaning when EPF sold MAHB shares at RM7.22 (averaging) did they make a profit? How much? Or did they make a loss?)
Here is MAHB's share price movement since 2023.
Then
one year later in May 2024 the MAHB share prices had jumped up over 52%
from RM7.22 (average EPF's sale price)) to RM10.90 per share. Why was
there such a big jump? What were the fundamental positive changes in
MAHB's business prospects in just over one year which motivated EPF's
investment department to advise (by May 2024) that EPF buy back more
MAHB shares? And at the much higher price of over RM10.40 per share?
- Looking at the price chart, EPF sold the MAHB shares around January 2023.
- At around RM7.22 per share (averaging).
- A year later by Feb 2024 the share price had already gone past RM8.00.
- In April 2024 it crossed RM10.00 per share.
- Today the price is at RM10.90.
- Wee Ka Siong says EPF bought back MAHB shares around May 2024 at RM11.00.
- (In that chart I dont see the MAHB shares hitting RM11.00).
- In May 2024 the price was around RM10.20 to RM10.28 per share.
What were the fundamental changes in MAHB's business performance that caused such a hike in the share price? None really.
Or was it because the news came out that BlackRock Global was buying a big stake in MAHB?
"SINGAPORE, Jan 8 2025 (Reuters) - A consortium comprising Malaysia's sovereign wealth fund and BlackRock's Global Infrastructure Partners offered to take over Malaysia Airports Holdings (MAHB.KL) said late on Wednesday it had secured an 84.1% stake of the company"
Obviously at the time EPF sold their stake (around January 2023??) the BlackRock purchase was not finalised and the surge in MAHB share prices had not happened. The price movement started after February 2024. EPF bought back the MAHB shares by May 2024.
My surmise is when EPF sold their stake in early 2023 of course they did not know of BlackRock's investment plans. The whole price surge since 2024 is because of BlackRock buying a big stake.
There really is no sin on EPF. But it looks like EPF has much confidence in BlackRock's presence as a shareholder in MAHB.