By Yantoultra Ngui

SINGAPORE, May 24 (Reuters) - A group of prominent

Malaysian civil society bodies have started a protest against a

bid by a consortium including BlackRock Inc ( BLK ) to take the

country's airport operator private amid boycott campaigns

against some U.S. firms over the Gaza war.

Around 22 organisations have issued a joint statement urging

the government to reconsider and block BlackRock's ( BLK ) participation

in the deal worth about $2.6 billion to take Malaysia Airports

Holdings (MAHB) private, alleging the firm has ties with Israel.

A consortium led by Malaysia's sovereign wealth fund

Khazanah Nasional Bhd and state pension fund the

Employees Provident Fund (EPF) announced on May 15 an offer for

the shares of MAHB it doesn't already own.

BlackRock's ( BLK ) unit, Global Infrastructure Partners (GIP), and

the Abu Dhabi Investment Authority (ADIA) are also part of the

consortium.

In a letter to EPF management on Thursday, the civil society

organisations, including the Malaysian Consultative Council of

Islamic Organisations and Viva Palestina Malaysia, urged the

pension fund to cease ties with BlackRock ( BLK ).

The privatisation plan has also faced criticism from some

opposition and ruling party lawmakers over BlackRock's ( BLK )

involvement.

BlackRock ( BLK ), Khazanah, EPF and MAHB did not immediately

respond to requests seeking comment on Friday.

The deal is the latest to face protests in Malaysia, a

majority-Muslim country in Southeast Asia and a staunch

supporter of the Palestinians.

Some Western brands in the country including Starbucks ( SBUX )

and McDonald, as in some other Muslim nations,

have been targeted by boycott campaigns over Israel's military

offensive in Gaza.

Malaysian's QSR Brands, the operator of fast food chains KFC

and Pizza Hut in Southeast Asia, has indefinitely shelved plans

to list on the local stock exchange as its businesses have been

affected by the boycott campaigns, Reuters reported in April.

On May 17, Prime Minister Anwar Ibrahim said claims that 25%

of MAHB would be owned by a pro-Zionist company are baseless,

without naming the company, local media reported.

Anwar's office did not immediately respond to requests

seeking comment on Friday.

If the deal is completed, Khazanah and EPF would jointly own

70% of MAHB, while the remaining 30% would be held by GIP and

ADIA.

Shares of MAHB have climbed 36% so far this year, giving it

a market value of $3.55 billion, LSEG data showed.

BlackRock ( BLK ) is the world's largest fund manager. The New

York-headquartered firm manages $9.09 trillion in assets

globally as of March 2023, according to its website.

($1 = 4.7170 ringgit)