KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB) has failed in its bid to unlock its investment in the operator of the Rajiv Gandhi International Airport in the south Indian city of Hyderabad.
The group announced yesterday that its agreement to dispose of its 11% stake in GMR Hyderabad International Airport Ltd (GHIAL) to GMR Airports Ltd has been terminated.
In a filing to Bursa Malaysia, MAHB 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 signed an agreement with GHIAL to dispose of its 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.
The group previously expected an estimated gain of RM255.14 million from the disposal. MAHB’s share price fell five sen, or 0.6%, to RM8.33 yesterday for a market capitalisation of RM13.82 billion.