Millennium Post

GMR arm buys Malaysia firm’s 10% stake in DIAL

GMR Airports, a subsidiary of GMR infrastructure, has acquired 10 per cent additional stake from Malaysia Airports (Mauritius) Private Limited for a consideration of $80 million, raising its stake to 64 per cent in Delhi International Airport Limited.

With the offloading of its entire 10 per cent holding to GMR Airports Limited (GAL) in Delhi International Airport Limited (DIAL), the Malaysian firm has exited the venture. Earlier, GAL had said it would be purchasing the additional shareholding in DIAL for $79 million. 

"Pursuant to the definitive agreement executed on March 24, 2015 and completion of all conditions precedent, GMR Airports Limited (GAL) has acquired 24,50,00,000 shares of face value of Rs 10 each, representing 10 per cent equity stake in DIAL from Malaysia Airports (Mauritius) Private Limited (MAMPL) for a revised consideration of $80 million in line with the terms of the definitive agreements," the company said in a regulatory filing. 

DIAL is a special purpose vehicle formed to carry out development, operation and management of Indira Gandhi International Airport in New Delhi, in which Airports Authority of India holds 26 per cent stake. Besides, Fraport AG, which operates Frankfurt Airport, too holds 10 per stakes in the joint venture.

MAMPL is a subsidiary of Malaysia Airports Holdings Berhad (MABH). MAHB had in March said it was <g data-gr-id="20">exiting</g> DIAL, as a minority share did not give it any "influence" in the venture. 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 <g data-gr-id="22">per cent</g>, 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," MAHB had said.  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. 
PTI

PTI

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