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A definitive agreement has been signed between GMR Airports International BV (GAIBV) and Aboitiz InfraCapital Inc (AIC) for the divestment of 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 the focus on deleveraging GMR Airports Ltd and churning assets for higher returns on investment.
“The transaction will be undertaken at an enterprise value of PhP 49.7 billion (INR 70.5 billion) and GAIBV will receive an upfront amount of PhP 9.4 billion (INR 13.3 billion) in lieu of the shares being transferred, and notes being issued.
“We would continue to operate as the technical services provider to GMCAC until December 2026, (and) would also be entitled to additional deferred consideration based on the subsequent performance of GMCAC for the same period,” the filing said.
PhP refers to Philippine Pesos.
GMR Group won the Cebu airport project in 2014.
Srinivas Bommidala, Business Chairman – International Airports, GMR Group said the decision to divest stake in GMCAC is also in line with GMR Airport’s strategy to focus on deleveraging and redeploying capital in high growth opportunities.
“Further, we have strengthened our position in the Asia Pacific Region by partnering with AP2 in developing and operating the Kualanamu International Airport at Medan, Indonesia,” he added.
GMR Group is operating the airports at Delhi, Hyderabad and Bidar (Karnataka) apart from Cebu airport. Among others, it is also developing airports in Greece and Indonesia.
GMR Airports International BV (GAIBV) is a step-down subsidiary of
and a direct subsidiary of GMR Airports Ltd.
Shares of
rose 2.86 per cent to Rs 39.50 apiece in morning trade on BSE.
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