GMR Infrastructure Limited has announced it has received Rs 1,740 crore towards divestment of 40 per cent stake in Istanbul Sabiha Gokcen International Airport in favour of Malaysia Airport Holdings Berhad (MAHB).
MAHB had first right of refusal and acquired the stake from GMR Infra which decided to exit the project.
This is the second major divestment of overseas assets by the GMR Group in over a year.
This divestment helps the group in capitalising on equity release of Rs 1,740 crore, in addition to reducing the proportionate debt of Rs 1,412 crore carried in the balance sheet as well as guarantees to an extent of Rs 2,298 crore.
G.M. Rao, Group Chairman, GMR Group said, in a statement said, “This transaction signifies GMR’s ability and consistent delivery in finding the best value for its assets and also to execute and complete a complex, cross boarder transaction at a time when the infrastructure segment is passing through a rough phase."
"GMR will continue to be a significant global airport operator with the recently won concession for developing Mactan Cebu International Airport in Philippines and will continue to add “Right Assets” to maintain sizeable levels of revenues and assets. We at GMR Group continue to focus on capital recycling, creating liquidity and enhance value by effective portfolio management under our ALAR (Asset Light Asset Right) Strategy. The efforts taken by the Group in recent times shall strengthen our balance sheet,” he said.
The consortium of Limak Holding, GMR Group and MAHB was selected as the preferred bidder for upgrading and maintaining the Istanbul Sabiha Gökçen International Airport in July 2007. The airport’s new terminal was completed in a record time and was commissioned in October 2009.