KUALA LUMPUR, June 21 (Reuters) - Global Infrastructure

Partners (GIP) said its buyer BlackRock ( BLK ) will not be

involved in privatising Malaysia Airports after criticism in

Muslim-majority Malaysia over the U.S. firm's alleged ties to

Israel.

GIP, Malaysian sovereign wealth fund Khazanah Nasional and

others are part of a consortium that has offered to take over

Malaysia Airport (MAHB) in a privatisation deal that

would value the airport operator at $3.9 billion.

The plan has come under criticism and protests from some

ruling party and opposition lawmakers in Malaysia, a staunch

supporter of the Palestinians, over GIP's ties to BlackRock's ( BLK )

significant investments in Israel, which is fighting a war

against the militant Palestinian Hamas group in Gaza.

MAHB's planned privatisation is the latest focus on protests

in Malaysia, following boycott campaigns against such Western

brands as McDonald's and Starbucks ( SBUX ) over the war

in Gaza.

GIP said its existing leadership team will "retain 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 ( BLK ), state news agency Bernama

reported on Friday, citing a written reply from GIP head of

transport Phil Iley.

A GIP spokesperson confirmed the Bernama report. Khazanah

did not immediately respond to requests for comment.

Iley said the firm would provide MAHB with as much

operational support and assistance as needed despite being a

minority shareholder.

"If we are successful with our transformation, we would very

much consider re-listing MAHB on the Malaysian stock exchange in

the future," he wrote.

Khazanah has said GIP would not hire staff to directly

manage MAHB, while Malaysian Prime Minister Anwar Ibrahim has

described claims that 25% of MAHB would be owned by a

pro-Zionist company as baseless, without naming the company,

Bernama reported.

Under the deal GIP and the Abu Dhabi Investment Authority

would own 30% of MAHB, while the majority stake would be held by

Khazanah and the Employees Provident Fund, Malaysia's largest

pension body. The fund did not respond to a request for comment

on GIP's statement.

BlackRock's ( BLK ) $12.5 billion acquisition of GIP is expected to

be completed in the third quarter.

MAHB manages 39 airports across Malaysia and an

international airport in Turkey.