GMR Airports to boost stake in Hyderabad International Airport in $100m deal

In a significant move aimed at consolidating its position, GMR Airports Limited (GAL) and its affiliate, known collectively as the “GMR Group”, are set to acquire an additional 11% equity stake in GMR Hyderabad International Airport Limited (GHIAL). This acquisition comes from the MAHB Group, comprising Malaysia Airports Holding Berhad (MAHB) and its wholly-owned subsidiary, MAHB (Mauritius) Private Limited (MAMPL). The deal is marked at an agreed sum of USD 100 million.

Enhanced Ownership for GMR Group in GHIAL

Post the completion of this acquisition, GAL’s current 63% stake in GHIAL’s paid-up capital will see an increase, taking it up to 74%. The remaining shares in GHIAL are divided between the Government of Telangana (GoT) and the Airports Authority of India (AAI), with each holding a 13% stake.

This transaction, contingent upon standard closing conditions, is projected to finalize within 135 days from the date the Share Purchase Agreement (SPA) was executed.

Recognizing Long-standing Partnerships and Group Strategy

GMR Group leaders acknowledged the significance of the move. G B S Raju, Business Chairman (Airports) of GMR Group, expressed gratitude towards MAHB for their role, noting, “MAHB has been one of the original shareholders and have been partners in our Airport journey. They have extended technical support during the initial years of both Delhi and Hyderabad Airports.”

Furthermore, Kiran Kumar Grandhi, the Corporate Chairman of GMR Group, emphasized the strategic importance of the acquisition, stating, “The acquisition of additional stake in GHIAL is in line with our objective of consolidating our presence in core assets of the Group and signifies the importance of Hyderabad airport in the overall Group portfolio.”

In compliance with SEBI Listing Regulations, this transaction between GMR Group and MAHB Group, both shareholders in GHIAL, adheres to the required RPT norms. It’s worth noting that GHIAL is presently a subsidiary of GAL, the Company, and another promoter, GMR Enterprises Private Limited, without any other interests from the promoters or promoter group in GHIAL.