GMR Airports Ltd, a subsidiary of GMR Infrastructure Ltd and part 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 ₹484 crore (about $ 76 million).

In a regulatory filing made to exchange, GMR had informed it will acquire 4.15 crore shares of ₹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 Greenfield airport Rajiv Gandhi International Airport under the public, private partnership mode.

Thus far, GMR held 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 March 2008.

The infrastructure company is in the process of taking up expansion of the Hyderabad airport with an outlay of over ₹2,500 crore. It has recently raised $350 million by offer of bonds for expansion and repayment of older debt.

According to MAHB, the move is part of its portfolio rebalancing strategy and aimed at unlocking value of its investment.

The stake sale transaction is expected to be completed by April.

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