MAHB cancels Hyderabad airport stake sale pact with GMR

Our Bureau Updated - January 03, 2019 at 04:58 PM.

GHIAL manages Rajiv Gandhi International Airport in Hyderabad

GHIAL, a special purpose vehicle manages, Rajiv Gandhi International Airport in Hyderabad

Malaysia Airports Holdings Berhad (MAHB) has announced the termination of stake sale deal with GMR Hyderabad International Airport Limited, a special purpose vehicle and step down subsidiary of the diversified GMR Infrastructure Limited.

The Malaysian company, in a regulatory announcement made to the exchange, stated: “The Board of Directors of MAHB wishes to announce that the share purchase agreement (SPA) has been automatically terminated due to failure of the Purchaser to complete their obligation in accordance with the terms of the SPA by December 31,  2018. Therefore, MAHB and MAHB (Mauritius) Private Limited shall remain as shareholders of GHIAL accordingly.”

The GMR management in February 2018 had announced that its subsidiary GMR Airports Limited had entered into an agreement with MAHB and its subsidiary to acquire 11 per cent stake that the Malaysian company has been holding in the GMR Hyderabad International Airport. The deal was valued at $76 million and was aimed at GMR consolidating its holding in the airport as a part of its expansion project.

However, the announcement comes in as a surprise as MAHB has stated that the termination of the agreement with the GMR for divesting its 11 per cent stake as the GMR failed to fulfill its obligations as per the agreement. Under the agreement, the deal was to be concluded before December 31.

GMR Hyderabad Airport Holdings Limited is a special purpose vehicle that comes under GMR Airports Limited, a step down subsidiary of GMR Infrastructure.

While the GMR Group holds 63 per cent stake, the Airports Authority of India has 13 per cent and the Telangana Government 13 per cent. With the cancellation of the share purchase agreement, MAHB will retain 11 per cent stake.

 

Published on January 3, 2019 05:30