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GMR Airports Ltd, a subsidiary of GMR Group, has entered into an agreement with Malaysia Airports Holdings Berhard (MAHB) to acquire the 11 per cent stake that the latter holds in GMR Hyderabad International Airport for Rs 484 crore (about $76 million).
In a regulatory filing made to the stock exchange on Friday, GMR informed it will acquire 4.15 crore shares of Rs 10 each from MAHB, equivalent to 11 per cent equity in the airport, subject to regulatory approvals.
GMR Hyderabad airport is a special purpose vehicle, which executed and manages the Rajiv Gandhi International Airport.
GMR holds 63 per cent equity stake through its airports arm and with the acquisition of 11 per cent stake from MAHB, it goes up to 74 per cent. Of the remaining stake, while the Airports Authority of India holds 13 per cent, the balance stake of 13 per cent is with the Telangana Government.
As per the transaction arrangement, the price is based on the assumption that the transaction takes place on or before December 1, 2018.
GHAIL has a concession period of 60 years starting from March 2008. GMR is in the process of taking up expansion of the Hyderabad airport with an outlay of over Rs 2,500 crore. It has recently raised funds for expansion and repayment of older debt.
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