GMR Group has decided to acquire the 11% stake of Malaysian partner MAHB Group in GMR Hyderabad International Airport (GHIAL) for $100 million.
Group company GMR Airports’ (GAL) stake in the airport, which is the fourth busiest in India by passenger traffic, will consequently increase to 74%. Subject to customary closing conditions, the transaction is expected to be concluded within 135 days from the date of execution of the share purchase agreement, the GMR Group said on Wednesday in a release announcing the signing of the SPA.
GAL, along with its affiliate as well as subsidiaries of GMR Airports Infrastructure, have signed an SPA with Malaysia Airports Holding Berhad (MAHB) and its subsidiary MAHB (Mauritius) (MAMPL). The acquisition will be for a negotiated aggregate consideration of $100 million, it said.
“Acquisition of the additional stake in GHIAL is in line with our objective of consolidating our presence in core assets of the Group and signifies importance of Hyderabad airport in the overall Group portfolio,” Corporate Chairman of GMR Group Kiran Kumar Grandhi said. Telangana government and the Airports Authority of India hold 13% equity each in GHIAL.
“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,” Business Chairman (Airports) of GMR Group G.B.S. Raju said, acknowledging the role of MHAB.
A greenfield project, the facility (Rajiv Gandhi International Airport) in Hyderabad was commissioned in March 2008 with an initial capacity of 12 million passengers per annum. In 2022-23, the airport handled a footfall of 21 million passengers. Work has started to raise the capacity, from 12 MPA, to 34 MPA with an integrated domestic and international terminal under a single roof. GHIAL reported a turnover of ₹1,246.36 crore last fiscal.
