MAHB to sell its entire stake in India's GHIAL for RM295m

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KUALA LUMPUR (Feb 2): Malaysia Airports Holdings Bhd (MAHB) is selling its entire stake in GMR Hyderabad International Airport Ltd (GHIAL) to India's GMR Airports Ltd for US$76.05 million (RM295.34 million).

GHIAL currently manages the Rajiv Gandhi International Airport in Hyderabad, India for a concession period until 2068.

MAHB said the proposed disposal provides an opportunity for the group to unlock its investment in GHIAL at an attractive value. It will use the proceeds for general corporate purposes and expenses in relation to the exercise.

The airport operator had invested RM40.2 million to acquire the 11% stake in GHIAL back in 2002. Based on the disposal price of RM295.34 million, the gain arising from the exercise is estimated to be RM255.14 million.

In a filing with Bursa Malaysia today, MAHB said its wholly-owned subsidiary MAHB (Mauritius) Pte Ltd has entered into a share purchase agreement with GMR Airports for the disposal of all of the 41.58 million shares or an 11% stake in GHIAL to the latter. GMR Airports already owns a 63% stake in GHIAL, while the Airports Authority of India and the state of Telangana each hold a 13% stake.

It added that the proposed disposal is expected to increase the group's earnings per share for the financial year ending Dec 31, 2018 by 15.38 sen.

Barring unforeseen circumstances, the proposed disposal is expected to be completed by April 30 this year, subject to an extension of up to Dec 1.

For the financial year ended March 31, 2017, GHIAL reported a net profit of Rs.2.92 billion (RM177.1 million) on revenue of Rs.13.77 billion (RM835.6 million).

MAHB shares closed up 13 sen or 1.44% at RM9.18 today, with 4.49 million shares done, giving it a market capitalisation of RM15.23 billion.