MAHB sells 11% stake in Rajiv Gandhi airport operator
PETALING JAYA: Malaysia Airports Holdings Bhd is disposing of its entire 11% stake in GMR Hyderabad International Airport Ltd (GHIAL) to India’s GMR Airports for US$76.05mil (RM295.34mil) cash.
MAHB and together with its wholly-owned subsidiary, MAHB (Mauritius) Private Ltd, had entered into a share purchase agreement with GMR Airports Ltd for the disposal of all of the 41.58 million equity shares (or 11%) of the total issued and paid-up share capital of GHIAL.
“The proposed disposal provides an opportunity for the MAHB group to unlock its investment in GHIAL at an attractive value,” MAHB said in a filing with Bursa Malaysia yesterday.
“This proposed disposal is part of MAHB group’s portfolio rebalancing strategy and the proceeds are intended for general corporate purposes and expenses in relation to the proposed disposal.”
GMR Aiports is the major shareholder in GHIAL with a 63% stake while Airports Authority of India and State of Telangana each own 13%.
“The principal activities of GHIAL are the designing, building, operating and managing the Rajiv Gandhi International Airport in Hyderabad, India for a concession period of 30 years until March 23, 2038, with an option to extend the term for an additional 30 years, which GHIAL has already exercised,” said MAHB.
MAHB shares ended up 13 sen to RM9.18 yesterday, boosted by news that the company would be implementing a slew of improvement initiatives at the KL International Airport (KLIA) this year to cater to increasing growth in passenger traffic movement.
In a statement on Wednesday, MAHB said the initiatives are expected to improve KLIA’s global rankings and enhance service levels as a whole for airport users.
In the statement, managing director Datuk Badlisham Ghazali said the airport operator had started the year by implementing immediate quick-wins that had gained positive feedback from the public and netizens, respectively.
It included working with the Immigration Department to open common counters during peak periods to reduce queuing time and enforcing strict measures to reduce traffic congestion at the pick-up and drop-off lanes.
“We will share our progress updates periodically on long-term projects such as the overhaul and upgrade of aerotrains, runway assessment and maintenance and expansion works at our other airports so that the public are more informed of the developments,” Badlisham said.
MAHB’s net profit surged to RM79.69mil in its third quarter ended Sept 30, 2017 from RM10.68mil in the previous corresponding period, underpinned by strong revenue growth in both its airport and non-airport operations.
Group revenue for the quarter grew 13% to RM1.21bil.
For the nine-months period ended Sept 30, 2017, the airport operator’s net profit stood at RM208.63mil from RM37.07mil previously, while revenue increased to RM3.41bil from RM3.09bil a year earlier.