GMR Airports Limited along with its Affiliate (GAL and Affiliate referred as “GMR Group”), subsidiaries of GMR Airports Infrastructure Limited (the “Company”) have entered into a Share Purchase Agreement (“SPA”) with Malaysia Airports Holding Berhad (“MAHB”) and MAHB’s wholly owned subsidiary, MAHB (Mauritius) Private Limited (“MAMPL”) (MAHB and MAMPL collectively referred to as “MAHB Group”), towards acquisition by GMR Group from the MAHB Group, of their current minority 11% equity stake in GMR Hyderabad International Airport Limited (“GHIAL”), a step down subsidiary of the Company. The said acquisition would be for a negotiated aggregate consideration of USD 100 million.
GAL currently holds 63% of the paid-up capital of GHIAL and post the proposed acquisition, its stake in GHIAL would increase to 74%. Government of Telangana (GoT) and the Airports Authority of India (AAI) hold 13% each in the equity stake of GHIAL.
The transaction, subject to the customary closing conditions is expected to be concluded within a maximum of 135 days from the date of execution of the said SPA.
G B S Raju, Business Chairman (Airports), GMR Group, acknowledging the role of MHAB, said “MAHB has been one of the original shareholders and have been partners in our Airport journey. They have extended technical support during the initial years of both Delhi and Hyderabad Airports.”
Kiran Kumar Grandhi, Corporate Chairman of GMR Group, said “The acquisition of additional stake in GHIAL is in line with our objective of consolidating our presence in core assets of the Group and signifies the importance of Hyderabad airport in the overall Group portfolio.”
Transaction with the MAHB Group, being a shareholder of GHIAL, would be a related party transaction for GAL in terms of SEBI Listing Regulations and accordingly the proposed transaction meets the requisite RPT norms. GHIAL is currently a subsidiary of GAL, the Company and one of its promoter GMR Enterprises Private Limited. Other than the direct and indirect shareholding of these entities in GHIAL, there is no other interest the promoters or promoter group have in GHIAL.
