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GMR to hike stake in Delhi International Airport to 64% for $79M

GMR Infrastructure Ltd, through its subsidiary GMR Airport Ltd (GAL), has inked a deal to acquire an additional 10 per cent stake in Delhi International Airport Pvt Ltd (DIAL) from 

Malaysia Airports Holdings Berhad (MAHB) for $79 million, the company said in a stock market disclosure. The deal is subject to requisite approvals.

As per the agreement, GAL will acquire 245 million shares representing 10 per cent stake in DIAL. With this, its holding will increase to 64 per cent stake in the company.

Malaysia Airports Holdings Berhad had invested $40 million between 2006 and 2008 to buy 10 per cent stake in DIAL.

"As the existing shareholders' agreement restricts foreign ownership in DIAL to not more than 49 per cent, MAHB is of the opinion that it would not be in a position to exert influence over DIAL unless it is able to own majority shareholding in it," Malaysia Airports Holdings Berhad said in a filing of Bursa Malaysia stock exchange.

DIAL, which manages New Delhi’s Indira Gandhi International Airport, is a joint venture company among GMR Group, Airports Authority of India (26 per cent), Fraport (10 per cent) and Malaysia Airports Holdings Berhad (10 per cent).

Recently DIAL raised $288.75 million in the international bond market and allotted 6.125 per cent senior secured fixed rate notes bonds maturing in seven years to investors in Asia and Europe.

Bangalore-based GMR Airports (formerly GMR Airports Holding Pvt Ltd) develops airport projects.

GMR Group has three assets under its aviation business—DIAL, GMR Hyderabad International Airport Ltd (GHIAL) and GMR Mactan Cebu International Airport (MCIA).

GHIAL is a JV between the GMR Group (63 per cent) government of India (13 per cent), government of Andhra Pradesh (13 per cent) and Malaysia Airports Holdings Berhad (11 per cent).

GMR Infrastructure's scrip was trading at Rs 15.45 each, up 0.65 per cent on BSE in mid-day market on Wednesday.

(Edited by Joby Puthuparampil Johnson)

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