GMR Hyderabad International Airport Limited, a subsidiary of GMR Infrastructure Limited, has acquired remaining 44.61 per cent stake owned by Malaysia Aerospace Engineering SDN BHD (MAE) in MAS GMR Aerospace Engineering Company Limited (MGAE), as per stock market disclosure.
The company has acquired 9,67,50,000 shares, representing 44.61 per cent stake in MAS GMR Aerospace Engineering for a nominal considerations, GMR said in a filing.
Prior to the acquisition, MGAE was a joint venture partnership between MAE and GMR Hyderabad International. Now, MGAE has become a wholly-owned arm of GMR Hyderabad International.
MGAE, which started its commercial operations in November 2011, is operating an aircraft maintenance repair and overhaul (MRO) unit located at an SEZ near Hyderabad International Airport which was set up at an investment of around Rs 350 crore. The facility was fully owned by MGAE.
Earlier, media reports had said that the decision to buy out the JV partner's stake was taken after its Malaysian partner expressed inability to infuse more funds into the loss-making MRO facility.
GMR Hyderabad International Airport is a joint venture company promoted by GMR Group with 63 per cent stake, while Malaysia Airports Holding Berhad owns 11 per cent. Government of Andhra Pradesh (13 per cent) and the Airports Authority of India (13 per cent) are also consortium partners.
Shares of GMR Infra closed at Rs 18.05 per share, down 4.75 per cent from their previous close on the BSE in weak Mumbai market on Friday.
(Edited by Joby Puthuparampil Johnson)