This article first appeared in The Edge Financial Daily on March 28, 2018

KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB) is exiting the airport business in Maldives via the disposal of its entire 23% stake in loss-making GMR Male International Airport Ltd (GMR Male) for US$7.3 million (RM28.5 million).

MAHB expects to realise a gain of US$7.3 million from the sale, as the total carrying value of GMR Male in the airport operator’s book has been fully impaired in 2014.The airport operator had invested a total equity of US$6.9 million for the 23% shares in GMR Male. MAHB told Bursa Malaysia in a filing yesterday that its wholly-owned subsidiary Malaysia Airports (Labuan) Pte Ltd had on March 14 entered into a share purchase agreement with GMR Holdings Pvt Ltd for the disposal of 8.81 million shares or a 23% stake in GMR Male to GMR Holdings. GMR Holdings currently holds the remaining 77% stake in GMR Male.

MAHB said the proposed disposal is not expected to have any effect on its issued and paid-up share capital and/or its substantial shareholders’ shareholding in the group. According to the MAHB annual report 2016, GMR Male posted a net loss of RM45.34 million on revenue of RM66.58 million for the financial year ended Dec 31, 2016. MAHB had on Feb 3 announced the disposal of its entire 11% stake in GMR Hyderabad International Airport Ltd to India’s GMR Airports Ltd for US$76.05 million cash. The gain on disposal is estimated to be RM255.14 million. The proposed disposal is expected to be completed by Dec 1 this year. MAHB is also reportedly scouting for suitable partners to buy a portion of its 100% stake in Istanbul Sabiha Gokchen International Airport in Turkey.