KUALA LUMPUR (Jan 2): Malaysia Airports Holdings Bhd (MAHB) said the agreement to dispose of its 11% stake in GMR Hyderabad International Airport Ltd (GHIAL) to GMR Airports Ltd has been terminated.
In a filing today, the airports operator said the share purchase agreement was automatically terminated as the purchaser failed to complete its obligation in accordance with the terms of the agreement by Dec 31, 2018.
GMR is the biggest shareholder of GHIAL with a 63% stake, followed by Airports Authority of India (13%), Telangana state government (13%) and MAHB (11%).
On Feb 2, 2018, MAHB had entered into an agreement with GHIAL to dispose of its 11% stake to GMR for US$76.05 million (RM318.57 million) to unlock its investment.
The proposed disposal was also part of MAHB’s portfolio rebalancing strategy, with the proceeds earmarked for general corporate purposes and to cover the expenses of the disposal.
The group previously expected an estimated gain of RM255.14 million from the disposal.
MAHB’s share price fell 5 sen or 0.6% to RM8.33 for a market capitalisation of RM13.82 billion.