MAHB plans to buy GMR's 40% stake in Turkish Airport
Malaysia Airports Holdings Berhad plans to buy the entire 40 percent stake of Indian firm GMR Infrastructure Ltd in Istanbul's Sabiha Gokcen International Airport project for 225 million euro (over Rs 1,900 crore).
Hyderabad: Malaysia Airports Holdings Berhad plans to buy the entire 40 percent stake of Indian firm GMR Infrastructure Ltd in Istanbul's Sabiha Gokcen International Airport project for 225 million euro (over Rs 1,900 crore).
GMR Infrastructure holds 27.55 per cent stake in Sabiha Gokcen airport, and its overseas firm GMR Infrastructure Overseas Ltd holds another 12.45 percent.
The Malaysian company said in a regulatory filing: "As permitted under the ISG Shareholders Agreement and the LGM Shareholders Agreement, MAHB exercised its RoFR through an indirectly wholly-owned subsidiary of MAHB called Malaysia Airports MSC Sdn Bhd ("MAMSC")."
The filing with Bursa Malaysia (the Malaysian stock exchange) further said, "It is anticipated that MAMSC will shortly enter into a share purchase agreement with GMRI, GMRO and GMRIG (collectively known as the "GMR Group" or the "Vendors"...for a total consideration of euro 225,000,000."
MAHB holds 20 percent stake in the project, while Turkey-based Limak Construction holds another 40 percent.
GMR Infrastructure in filing with Indian bourses said it received a communication from MAHB seeking its Right of First Refusal for acquisition of 40 percent stake.
"We would like to further inform that pursuant to the process of disinvestment of GMR's 40 percent stake in Sabiha Gokcen International Airport and LGM tourism we confirm that early today we have received a notice from Malaysia Airports Holdings Berhad one of the shareholders of ISGIA and LGM seeking right of first refusal for acquisition of 40 percent equity stake in ISGIA and LGM," GMR said.
When contacted, a senior official of the GMR Group said they are in the process of going through all the documents.
"It will take possibly 3 months for the deal to be concluded," CFO of Airports vertical of GMR Sidharth Kapur told PTI.
The GMR Infrastructure consortium had taken over the Turkish Airport project in May 2008 and has the rights to operate it till 2030.
The consortium invested 470 million euro in ISGIA including the construction cost of 360 million euro for the new International terminal.
GMR Infrastructure scrip was quoting at Rs 24.10, up 1.05 percent, on the BSE towards the end of the session, after touching Rs 24.95 earlier in the day.
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The contract award comes decades after the state government first mooted the project.
The group has already sold part of its power transmission business and lenders converted part of their debt into equity in two of GMR's power plants last year
GMR had won the airport contract when government headed by former President Mohamed Nasheed was in place, but the project, the largest single investment in the history of Maldives, began facing problems soon after a regime change in the country earlier this year.