Bangalore, April 30, 2014:
GMR Infrastructure is pleased to announce receipt of Rs.1,740 crore* (Euro 209 Million)* as culmination of divestment of its 40% equity stake in Istanbul Sabiha Gökçen Uluslararasi Havalimani Yatirim, Yapim Ve Isletme A.S (“ISG”) and LGM Havalimani Isletmeleri Ticaret Ve Turizm A.S (“LGM Tourism”) to Malaysian Airports Holding Berhard (“MAHB”) for a final amount of Rs.1,740 Crores* (EUR 209 million) in terms of definitive agreements signed subsequent to the exercise of Right of First Refusal by MAHB under the existing shareholders agreement of ISG, on 23 December 2013.
This is the second major divestment of overseas assets by the GMR Group in over a year. This divestment helps the group in capitalizing on equity release of Rs.1,740 crores* (EUR 209 Million), in addition to reducing the proportionate debt of Rs.1,412 crores* (EUR 169.55 Million) carried in the balance sheet as well as guarantees to an extent of Rs.2,298 crores* (EUR 276.03 Million).
Commenting on this transaction, G.M. Rao, Group Chairman, GMR Group said, “This transaction signifies GMR’s ability and consistent delivery in finding the best value for its assets and also to execute and complete a complex, cross boarder transaction at a time when the infrastructure segment is passing through a rough phase. GMR will continue to be a significant global airport operator with the recently won concession for developing Mactan Cebu International Airport in Philippines and will continue to add “Right Assets” to maintain sizeable levels of revenues and assets. We at GMR Group continue to focus on capital recycling, creating liquidity and enhance value by effective portfolio management under our ALAR (Asset Light Asset Right) Strategy. The efforts taken by the Group in recent times shall strengthen our Balance Sheet”
The consortium of Limak Holding, GMR Group and MAHB was selected as the preferred bidder for upgrading and maintaining the Istanbul Sabiha Gökçen International Airport in July 2007. The airport’s new terminal was completed in a record time and was commissioned in October 2009, 12 months ahead of schedule. LGM Tourism undertakes the operation of non-aero services such as hotel, food & beverages, and lounge at the airport.
Rothschild (India) Private Limited and White & Case LLP acted as Financial Advisors and Legal Counsels respectively to GMR Group.
* Exchange Rate considered is Euro 1 = INR 83.25
About GMR Infrastructure Ltd.
GMR Infrastructure Ltd is a Bangalore headquartered global infrastructure major with interests in Airports, Energy, Highways and Urban Infrastructure sectors. It has successfully employed the public-private partnership model to build a portfolio of high quality assets. The Company has 15 power generation assets of which 8 are operational and 7 are under various stages of development and 8 Road assets, of which 7 are operational and one is under construction. In the Airports sector, the Company operates India’s busiest airport, the Indira Gandhi International Airport in New Delhi, where it has built a brand new integrated terminal T3. It has also developed and commissioned the Greenfield international airport at Hyderabad as a gateway to south and central India. It has been part of a consortium that has upgraded and is operating the Istanbul Sabiha Gökçen International Airport. GMR Group is also committed to social development initiatives and executes these through its Corporate Social Responsibility arm, the GMR Varalakshmi Foundation which is present in 24 locations.
For further information about GMR Group, visit www.gmrgroup.in
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