DIAL’s Malaysian partner to sell full 10% stake for $79 million
25 March 2015 11:23 PM GMT
Malaysia Airports Holdings on Tuesday announced sale of its entire 10 per cent stake in Delhi International Airport for Rs 492 crore, saying a minority share did not give it any "influence" in the venture.
The Malaysian entity, which made its first investment in Delhi International Airport (DIAL) in 2006,
would be reaping a profit of nearly $22 million from the proposed sale.
In a filing to the Malaysian stock exchange, MAHB said it would sell 245 million equity shares for a "total cash consideration of $79 million" to GMR Airports.
MAHB had recently realigned its investment objectives to focus more on investments in companies where it can exercise a significant degree of control. "As the existing shareholders agreement restricts foreign ownership in DIAL to not more than 49 per cent, MAHB is of the opinion that it would not be in a position to exert influence in DIAL unless it is able to own majority shareholdings in DIAL," the filing said.
For the transaction, Malaysia Airports (Mauritius), a wholly-owned subsidiary of MAHB, has entered into a conditional share sale agreement with GMR Airports. Since April 10, 2006 till October 23, 2008, MAHB invested over $57.6 million by taking its total stake to 10 per cent in DIAL. In case the offloading of 10 per cent stake is not completed before April 30, then the sale consideration could be revised, the filing noted. The proposed sale is seen as a strategic opportunity to crystallise its investment after realising the value of the investment in DIAL, it added.
At present, GMR Airports has 54 per cent stake in DIAL while Airports Authority of India (AAI) has 26 per cent share.
The Malaysian entity, which made its first investment in Delhi International Airport (DIAL) in 2006,
would be reaping a profit of nearly $22 million from the proposed sale.
In a filing to the Malaysian stock exchange, MAHB said it would sell 245 million equity shares for a "total cash consideration of $79 million" to GMR Airports.
MAHB had recently realigned its investment objectives to focus more on investments in companies where it can exercise a significant degree of control. "As the existing shareholders agreement restricts foreign ownership in DIAL to not more than 49 per cent, MAHB is of the opinion that it would not be in a position to exert influence in DIAL unless it is able to own majority shareholdings in DIAL," the filing said.
For the transaction, Malaysia Airports (Mauritius), a wholly-owned subsidiary of MAHB, has entered into a conditional share sale agreement with GMR Airports. Since April 10, 2006 till October 23, 2008, MAHB invested over $57.6 million by taking its total stake to 10 per cent in DIAL. In case the offloading of 10 per cent stake is not completed before April 30, then the sale consideration could be revised, the filing noted. The proposed sale is seen as a strategic opportunity to crystallise its investment after realising the value of the investment in DIAL, it added.
At present, GMR Airports has 54 per cent stake in DIAL while Airports Authority of India (AAI) has 26 per cent share.
Next Story
