India-Philippines consortium sells Cebu airport business

A CONSORTIUM that includes India's GMR Group is selling its business developing and operating the Philippines' second-largest airport for $440.2m, its Filipino partner announced Friday (2).

The consortium of GMR Group and the Philippines' Megawide Construction Corp will sell its interests to operate the Mactan-Cebu International Airport to Aboitiz InfraCapital Inc, a unit of a family-owned conglomerate.

Megawide said in a disclosure to the local stock exchange that the deal includes the issuance of shares and convertible notes to acquire the company.

The listed parent firm Aboitiz Equity Ventures confirmed the deal in a separate disclosure.

The Philippine government in 2014 awarded a 25-year concession to GMR and Megawide to operate and expand the main gateway to the central city of Cebu, the country's second-largest metropolis after Manila.

Megawide said the sale is subject to ‘customary closing conditions', which includes approval from third parties and regulators.