Business Standard

Sunday, December 22, 2024 | 03:41 AM ISTEN Hindi

Notification Icon
userprofile IconSearch

GMR divests stake in Istanbul airport

A definitive agreement with Malaysian Airports Holding Berhard has been signed to the effect

BS Reporter Bangalore
Bangalore-based infrastructure major GMR said on Monday it had signed an agreement with Malaysian Airports Holding Berhad (MAHB)  to divest its 40 per cent equity stake in the Istanbul Sabiha Gökçen (ISG) airport and in LGM Tourism, which operates services at the former, for €225 million (Rs 1,910 crore).

Definitive agreements were signed on December 23, subsequent to the exercise of Right of First Refusal by MAHB under the existing shareholders agreement on ISG, the company stated. The transaction is subject to the customary closing conditions, including approval of the relevant government authorities and project lenders to ISG.

This is the second major divestment of foreign assets by GMR Group in a little less than nine months. In March, it had divested stake in GMR Energy (Singapore) Pte Ltd.  
 

The present divestment of the two assets mentioned is estimated to release around Rs 3,500 crore of capital, simultaneously reducing an estimated Rs 5,000 crore of debt, the company said.

Rothschild (India) and White & Case LLP acted as financial advisors and legal counsels, respectively, to GMR.

G M Rao, group chairman, said: “We at GMR Group continue to focus on creating liquidity and enhance value by effective portfolio management under our ALAR (asset light, asset right) strategy.”

Istanbul Sabiha Gökçen International Airport is located on the Anatolian side of Istanbul. It hosts 58 carriers, covering 125 destinations. The consortium of Limak Holding, GMR Group and MAHB was selected as the preferred bidder for upgrading and maintaining the airport in July 2007.

The airport’s new terminal was completed and commissioned in October 2009, a year ahead of schedule. LGM Tourism undertakes the operation of non-aero services at the airport such as hotel, food & beverages, and lounge. GMR’s equity investment at ISG is €71.6 million.

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Dec 31 2013 | 12:46 AM IST

Explore News