Malaysia Airports Holding Cancels Hyderabad Airport Stake Sale Pact With GMR
GMR did not fulfill the obligations as per the agreement before Dec. 31.
Malaysia Airports Holding Berhad said it terminated the share purchasing agreement with the GMR Group for selling its 11 percent stake to the latter as the Indian infrastructure major did not fulfill the obligations as per the agreement before Dec. 31.
GMR Infrastructure Ltd. in February last year said its subsidiary GMR Airports Ltd. entered into an agreement with MAHB and its subsidiary to acquire 11 percent of the stake that the Malaysian company is holding in GMR Hyderabad International Airport, for $76 million.
"The board of Directors of MAHB wishes to announce that the SPA has been automatically terminated due to failure of the purchaser to complete their obligation in accordance with the terms of the SPA by Dec. 31, 2018,” MAHB said in a regulatory filing on Wednesday. “Therefore, MAHB and MAHB (Mauritius) Private Limited shall remain as shareholders of GHIAL accordingly."
GHIAL is a special purpose vehicle that manages Rajiv Gandhi International Airport.
Besides MAHB, GAL currently holds 63 percent stake and the remaining in the company is held 13 percent each by the Airports Authority of India and the Telangana government.