GMR Infrastructure’s proposed deal to buy out its Malaysian partner from a joint venture that operates the Hyderabad airport fell through as the Indian company failed to fulfil the obligations stated by the share purchase agreement.
Malaysia Airports Holdings Berhad said in a stock-exchange disclosure that it has terminated the share purchase agreement to sell 11% stake in GMR Hyderabad International Airport to GMR for $76 million (Rs 486.8 crore).
In February 2018, GMR Infrastructure subsidiary GMR Airports had entered into a pact with Malaysian Airports to buy stake in GMR Hyderabad. The sale was expected to be completed by 30 April 2018, with an extension till 1 December.
On 3 December, Malaysia Airports and GMR agreed to extend the deadline till 31 December.
GMR Airports holds 63% stake in GMR Hyderabad. Airports Authority of India and the government of Telangana hold 13% stake each. The rest 11% stake is owned by Malaysia Airports.
GMR Hyderabad was set up in 2002 to design, finance, build, operate and maintain the Rajiv Gandhi International Airport in Hyderabad. The company posted a profit after tax of Rs 602.7 crore on revenue from operations of Rs 1,252 crore for the year ended March 2018. It handled more than 18.3 million passengers during the year.
Earlier in 2015, Malaysia Airports had sold its 10% stake in Delhi International Airport Ltd, operator of Indira Gandhi International Airport in the national capital, to GMR Airports for $79 million.
Incorporated in 1992, Malaysia Airports was the first Asian airport operator to get listed on stock exchanges in 1999. The company’s core business is management, operation and development of airports.
GMR Infrastructure operates in airports, energy, transport and urban infrastructure sectors. The company’s airport business operates three airports — at New Delhi, Hyderabad and Mactan in the Philippines. It is also developing an airport in Goa.