GMR Hyderabad International Airport Limited (GHAIL) on Friday bought out Malaysia Aerospace Engineering SDN BHD (MAE)’s 44.61 per cent stake in a jointly-owned maintenance and overhaul facility.
With the buyout, MAS GMR Aerospace Engineering Company Limited (MGAE), becomes a wholly-owned subsidiary of GHIAL, itself a subsidiary of the diversified GMR Infrastructure Limited.
The Union Commerce Ministry had agreed to the buyout of the maintenance, repair and overhaul (MRO) unit located in the special economic zone close to the Hyderabad international airport here.
The Ministry had stipulated that GMR and its partner fulfil all statutory conditions and continue to operate the maintenance facaility. GMR had in the past indicated that Malaysian Aerospace Engineering had expressed its inability to infuse fresh funds into the loss-making MRO facility.
Difficult phase The company’s parent Malaysia Airlines Systems had been facing difficult times after the disappearance of flight MH370 earlier this year.
The MRO facility was set up in 2011 with an investment of about ₹350 crore and had posted losses of about ₹240 crore as of March 2014
Post the stake buyout, the MRO would be named GMR Aerospace Engineering Company Limited.
The company’s shares closed at ₹18.05, down 5 per cent.