PETALING JAYA: Malaysia Airports Holdings Bhd’s (MAHB) bid to sell its entire 11% stake in GMR Hyderabad International Airport Ltd (GHIAL) was to no avail, after the purchaser failed to fulfill the obligation within the stipulated time frame to seal the deal.
The group told the stock exchange that this comes as the purchaser GMR Airports Ltd failed to complete the obligation for the RM295.34 million deal, in accordance to the terms of the sale and purchase agreement within the stipulated dateline of Dec 31, 2018.
With this, MAHB and its wholly owned subsidiary MAHB (Mauritius) Private Ltd will remain as shareholders of GHIAL.
Earlier last year, MAHB announced its intention to sell its 11% stake or 41.58 million shares to GMR Airports, which owns a 63% stake in GHIAL. The Airports Authority of India and the state of Telangana hold 13% equity interest, each.
The deal was supposed to be concluded on Dec 1, 2018, but later MAHB decided to extend the long stop date until Dec 31, 2018.
The principal activities of GHIAL are the designing, building, operating and managing the Rajiv Gandhi International Airport in Hyderabad, India for a concession period of 30 years until March 23, 2038, with an option to extend the term for an additional 30 years, which GHIAL has already exercised.
MAHB’s shares fell 0.6% to close at RM8.33 with 815,300 shares done.