GMR Group operates Delhi, Hyderabad and Bidar (Karnataka) airports except Cebu airport.
New Delhi:
GMR Group said Friday that it will divest its entire 40 percent stake in Cebu International Airport in the Philippines for an upfront payment of Rs 1,330 crore over a period of more than four years.
The airport is operated by GMR-Megawide Cebu Airport Corporation (GMCAC) and GMR Airports International BV (GAIBV) has a 40 percent stake in the company.
A definitive agreement has been signed between GMR Airports International BV (GAIBV) and Aboitiz InfraCapital Inc (AIC) for the sale of the stake in Cebu airport. AIC is the infrastructure arm of the Philippines-based Aboitiz Group.
According to a regulatory filing, the stake is being divested as part of its focus on deleveraging GMR Airports Ltd and divesting assets for a higher return on investment.
“The transaction will be executed at an enterprise value of PhP 49.7 billion (INR 70.5 billion) and GAIBV will receive an upfront payment of PhP 9.4 billion (INR 13.3 billion) in lieu of the shares being transferred and issued.
“We would continue to operate as the technical services provider for GMCAC until December 2026, (and) also be entitled to additional deferred compensation based on GMCAC’s subsequent performance for the same period,” the filing said.
PhP refers to Philippine Pesos.
GMR Group won Cebu airport project in 2014.
Srinivas Bommidala, Business Chairman – International Airports, GMR Group said the decision to divest its stake in GMCAC is also in line with GMR Airport’s strategy to focus on deleveraging and reallocating capital into high growth opportunities.
“We further strengthened our position in the Asia-Pacific region by partnering with AP2 in the development and operation of Kualanamu International Airport in Medan, Indonesia,” he added.
GMR Group operates Delhi, Hyderabad and Bidar (Karnataka) airports except Cebu airport. It also develops airports in Greece and Indonesia, among others.
GMR Airports International BV (GAIBV) is a retiring subsidiary of GMR Infrastructure Ltd and a direct subsidiary of GMR Airports Ltd.
Shares of GMR Infrastructure rose 2.86 percent to Rs 39.50 apiece in morning trading on BSE.
(Except for the headline, this story has not been edited by DailyExpertNews staff and has been published from a syndicated feed.)
