MAHB, MAMPL dispose of GHIAL stake for US$76.05 mln

KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB) and its wholly-owned unit, MAHB (Mauritius) Pte Ltd (MAMPL), have signed a share purchase agreement with GMR Airports Ltd to dispose of the entire 11 per cent equity interest in GMR Hyderabad International Airport Ltd (GHIAL) for US$76.05 million (US$1 = RM3.88).

GMR Airports is GHIAL’s largest shareholder, holding 63 per cent equity interest with 238.14 million shares as at Dec 31, 2017.

In a filing to Bursa Malaysia yesterday, MAHB said, the proposed disposal would provide an opportunity for the group to unlock its investment in GHIAL at an attractive value.

“Based on the investment made in 2002 by MAMPL and MAHB in GHIAL, the total cost of investment for the 11 per cent stake is approximately RM40.2 million,” it said.

It said the proposed disposal was expected to be completed by April 30, 2018, subject to an extension of up to Dec 1, 2018.

“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,” said MAHB.

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. —