MAHB sells stake in Indian unit for RM295m

PETALING JAYA: Malaysia Airports Holdings Bhd (MAHB) and its wholly owned subsidiary MAHB (Mauritius) Private Limited (MAMPL) have entered into a share purchase agreement (SPA) with GMR Airports Limited for the disposal of its entire 11% stake in GMR Hyderabad International Airport Limited (GHIAL) to GMR Airports for US$76.05 million (RM295.34 million) cash.
The principal activities of GHIAL are the designing, building, operating and managing the Rajiv Gandhi International Airport in Hyderabad, India for a concession period of 30 years until March 23, 2038, with an option to extend the term for an additional 30 years, which GHIAL has already exercised.
GMR Airports is a subsidiary of GMR Infrastructure Limited, an entity listed on the National Stock Exchange of India Limited and BSE Limited (Bombay Stock Exchange). The principal activity of GMR Airports is as investment holding company.
MAMPL is a wholly-owned subsidiary of MAHB. The principal activity of MAMPL is as investment holding company.
The principal activity of MAHB is as investment holding company. Its subsidiaries are
mainly involved in the management, operations, maintenance and provision of airport
related services for airports in Malaysia, India and Turkey.
"The proposed disposal provides an opportunity for the MAHB Group to unlock its investment in GHIAL at an attractive value," MAHB said in a stock exchange filing.
It added that this exercise is part of MAHB group’s portfolio rebalancing strategy and the proceeds are intended for general corporate purposes and expenses in relation to the proposed disposal.
Barring unforeseen circumstances and subject to all required approvals being obtained, the proposed disposal is expected to be completed by April 30, 2018 subject to an extension of up to Dec 1, 2018.