Malaysia Airports Holdings Berhad plans to buy the entire 40 per cent stake of Indian firm GMR Infrastructure Ltd. in Istanbul’s Sabiha Gokcen International Airport project for 225 million euro (over Rs.1,900 crore).

GMR Infrastructure holds 27.55 per cent stake in Sabiha Gokcen airport, and its overseas firm GMR Infrastructure Overseas Ltd. holds another 12.45 per cent.

The Malaysian company said in a regulatory filing: “As permitted under the ISG shareholders agreement and the LGM shareholders agreement, MAHB exercised its RoFR through an indirectly wholly-owned subsidiary of MAHB, called Malaysia Airports MSC Sdn Bhd (MAMSC).”

The filing with Bursa Malaysia (the Malaysian stock exchange) further said, “It is anticipated that MAMSC will shortly enter into a share purchase agreement with GMRI, GMRO and GMRIG (collectively known as the GMR Group or the ‘Vendors’...for a total consideration of euro 225,000,000.”

MAHB holds 20 per cent stake in the project, while Turkey-based Limak Construction holds another 40 per cent.

GMR Infrastructure in filing with Indian bourses said it received a communication from MAHB seeking its Right of First Refusal for acquisition of 40 per cent stake.

“We would like to further inform that pursuant to the process of disinvestment of GMR’s 40 per cent stake in Sabiha Gokcen International Airport and LGM tourism, we confirm that early today we have received a notice from Malaysia Airports Holdings Berhad one of the shareholders of ISGIA and LGM seeking right of first refusal for acquisition of 40 per cent equity stake in ISGIA and LGM,” GMR said.

When contacted, a senior official of the GMR Group said they were in the process of going through all the documents. “It will take possibly three months for the deal to be concluded,” CFO of Airports vertical of GMR Sidharth Kapur told PTI.

The GMR Infrastructure consortium had taken over the Turkish Airport project in May, 2008, and has the rights to operate it till 2030.

The consortium invested 470 million euro in ISGIA, including the construction cost of 360 million euro for the new International terminal.

GMR Infrastructure shares were quoting at Rs.24.10, up 1.05 per cent, on the Bombay Stock Exchange towards the end of the session, after touching Rs.24.95 earlier in the day.

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