GMR Airports to Acquire 11% Stake in GMR Hyderabad Airport from Malaysia Airports for $100 Million
GMR Airports, a subsidiary of the GMR Group, has announced a share purchase agreement with Malaysia Airports Holding Berhad (MAHB) and MAHB's subsidiary, MAHB (Mauritius) Private Ltd, to acquire their 11% equity stake in GMR Hyderabad International Airport Ltd (GHIAL) for $100 million.
GMR Airports to Acquire 11% Stake in GMR Hyderabad Airport from Malaysia Airports for $100 Million
GMR Airports, a subsidiary of the GMR Group, has announced a share purchase agreement with Malaysia Airports Holding Berhad (MAHB) and MAHB's subsidiary, MAHB (Mauritius) Private Ltd, to acquire their 11% equity stake in GMR Hyderabad International Airport Ltd (GHIAL) for $100 million. GMR Airports already holds a 63% stake in GHIAL, and after this acquisition, its stake will increase to 74%.
GHIAL is a subsidiary of GMR Airports Ltd, a company known for its expertise in designing, building, and operating airports. The group also has a significant presence in various sectors, including energy, transportation, and urban infrastructure. They operate several airports in India, including Delhi Airport, Hyderabad Airport, and New Goa Airport.
The transaction with MAHB is expected to be concluded within 135 days from the date of execution of the agreement. This acquisition is considered a "related party transaction" for GMR Airports, as GHIAL is currently a subsidiary of GMR Airports Ltd.
GMR Group acknowledged the historical partnership with MAHB, mentioning their technical support during the initial years of both Delhi and Hyderabad airports. The group is also involved in international airport projects, such as Kualanamu International Airport in Indonesia and providing technical services to the Mactan Cebu International Airport in the Philippines.
Despite this positive development, shares of GMR Airports saw a marginal dip of 0.33% on the BSE, reflecting broader market trends. The company's board is scheduled to meet on October 27, 2023, to announce its financial results for the quarter and half-year ending on September 30, 2023.
In their monthly traffic updates, GMR Airports reported strong year-on-year growth in passenger traffic at Delhi and Hyderabad airports for September. Delhi Airport reached a milestone of handling its highest-ever half-yearly passenger traffic, surpassing 35 million passengers in H1 FY24, while Hyderabad Airport crossed the 12 million mark for half-yearly passenger traffic in the same period. Additionally, their international airports in Medan, Indonesia, and Cebu, Philippines, also experienced significant growth in overall traffic.
