MAHB plans to buy GMR's 40% stake in Turkish Airport

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.

[caption id=“attachment_180428” align=“alignleft” width=“380”]  Image courtesy GMR[/caption]

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.”

More from Business

Hyundai India’s Rs 27,870 crore IPO oversubscribed by 2.28X, largely driven by institutional investors How Indian fintech startups are driving Malaysia’s UPI-like digital payments revolution

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.

Impact Shorts

More Shorts

Chennai Ranks #1 in Challan Checks: ACKO Insights for Smarter Car and Two Wheeler Insurance Decisions

Tata Harrier EV vs Mahindra XEV 9e: Design and road presence compared

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.

PTI