Malaysian Airports Holdings Berhad has entered into a Sale and Purchase Agreement with GMR Airports Singapore Private Limited for the disposal of the entire 41,580,000 equity shares of Rs.10 each, representing 11% of the issued and paid-up
share capital of GMR Hydrebad International Airport to GASPL, for a cash consideration of USD100 million (approximately RM478.85 million)
GMR Airports Limited is also a party in the SPA. The consideration for the purchase of the Sale Shares is the sum of USD100 million in cash which entails the following: The consideration for the purchase of the Sale Shares held by MAHB amounts
to USD15,536 in cash, representing 0.02% of the Consideration; and
GHIAL is a public limited company involved in the provision of airport management services on a build, owned, operated,d and transferred, as well as an operate-only model. At present, GHIAL manages the operations of Rajiv Gandhi International Airport in Hyderabad, India, and the Bidar Airport in Karnataka, India.
The parties said the term of the Concession Agreement is 30 years beginning on 23 March 2008 until 23 March 2038 with an option to extend the term for an additional 30 years, which GHIAL had already exercised. GHIAL had on 9 May 2022 announced that a confirmation letter from MoCA had been received, extending the term of the Concession Agreement for operating RGIA for a further period of 30 years up to 22 March 2068.
MAHB said the proposed disposal provides an opportunity for the Group to dispose of and unlock the value of its non-core assets and streamline its overseas investment portfolio. Since the opening of the Rajiv Gandhi International Airport on 23 March 2008, MAHB Group has only received USD 6.41 million (approximately RM30.7 million) of dividends from GHIAL.
Hence, the Proposed Disposal it says it to unlock its investment in GHIAL as it only holds a minority stake and does not exercise control and would instead reinvest the disposal proceeds into assets where the Group has more direct control in its investment.
