MAHB makes second disposal in two months

PETALING JAYA: Malaysia Airports Holdings Bhd (MAHB), which sold out of GMR Hyderabad International Airport Ltd in February, has now disposed its entire 23% stake in GMR Male International Airport Ltd (GMIAL) for US$7.3 million (RM28.5 million).
MAHB told Bursa Malaysia that its wholly owned subsidiary Malaysia Airports (Labuan) Private Ltd (MALPL) had on March 14 entered into a share purchase agreement with India’s GMR Holdings for the disposal, including receivables and loans.
The airport operator will see a gain of US$7.3 million from the sale, as the total carrying value of GMIAL in MAHB’s book was fully impaired in 2014. MALPL invested a total equity of US$6.9 million for the 23% shares in GMIAL.
GMIAL was incorporated in Maldives in Aug 9, 2010 to operate, maintain, expand, rehabilitate and modernise the Ibrahim Nasir Airport for a period of 25 years.
Two years into the job however, the Maldives government and Maldives Airports Company Ltd (MACL) declared that the concession agreement with GMIAL was void ab initio.
A panel of arbitrators in the arbitration process initiated by the Maldives government and Maldives Airport Company Ltd (MACL) however declared the concession agreement valid and the Maldives government and MACL were liable in damages to GMIAL for loss caused by wrongful repudiation of the agreement.
On Nov 16, 2016, the Maldives government paid a sum of about US$271 million to GMIAL, which were to settle GMIAL’s bank borrowings, creditors and other accrual expenses.
MAHB’s shares were up 3 sen or 0.3% to close at RM8.87 today, on some 2.41 million shares traded.