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The debt-laden GMR group is close to selling a part of its controlling stake in the Hyderabad airport to Abu Dhabi’s sovereign wealth fund.
The group is likely to offload 20-25 per cent of its stake in the airport at an enterprise value of $700 million (roughly ₹4,500 crore).
Malaysia Airports Holdings could also make a partial exit through the deal.
While a representative for the Abu Dhabi Investment Authority declined to comment via email, a spokesperson for the GMR Group said: “We do not comment on speculative information.”
Industry sources and investment banking sources, however, confirmed that the talks between the two are almost complete.
GMR Hyderabad International Airport Ltd (GHIAL) is currently a joint venture comprising GMR Group (63 per cent), the Government of India (13 per cent), Government of Telangana (13 per cent) and Malaysia Airports Holdings (11 per cent).
GMR Infrastructure had reported standalone net loss of ₹382 crore in the December 2016 quarter. At the end of the FY16, GMR Infrastructure reported total long-term borrowings of ₹47,550.11 crore. The airport vertical is GMR’s core business, contributing close to 49 per cent of revenue for FY16 at ₹6,540 crore. Total operating revenues for FY16 stood at ₹13,357 crore.
GMR Infrastructure’s shares closed at ₹17.55 on the BSE on Thursday, up 2.03 per cent from their previous close.
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