MAHB cancels Hyderabad airport stake sale pact with GMR as buyer fails to fulfil obligations before 31 Dec
GMR Airports Limited entered into a pact with Malaysia Airports Holding Berhad and its subsidiary to acquire 11 percent stake that the Malaysian firm is holding in GMR Hyderabad International Airport.
Hyderabad: Malaysia Airports Holding Berhad has said it terminated the share purchasing agreement (SPA) with the GMR Group for selling its 11 percent stake to the latter as the Indian infra major did not fulfil the obligations as per the agreement before 31 December.
GMR Infrastructure Limited in February last year said its subsidiary GMR Airports Limited (GAL) entered into an agreement with Malaysia Airports Holding Berhad and its subsidiary to acquire 11 percent of the stake that the Malaysian company is holding in GMR Hyderabad International Airport Limited (GHIAL), for $76 million.
"The board of directors of MAHB wishes to announce that the SPA has been automatically terminated due to failure of the purchaser to complete their obligation in accordance with the terms of the SPA by 31 December 2018. Therefore, MAHB and MAHB (Mauritius) Private Limited shall remain as shareholders of GHIAL accordingly," MAHB said in a regulatory filing on Wednesday.
GHIAL, a special purpose vehicle, manages Rajiv Gandhi International Airport here.
GAL currently holds 63 percent stake and the remaining in the company is held by Airports Authority of India (13 percent) and the Telangana government (11 percent). GMR Infrastructure shares were trading at Rs 16 apiece on the BSE at 10 a.m.
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