GMR to stay invested in Istanbul airport

Recently there were reports suggesting that Istanbul Airport was part of process for cutting down its around Rs 40,000-crore debt

Bangalore-based infrastructure and airport developer GMR Group today said it would remain invested in the Sabiha Gokcen International Airport in Istanbul, Turkey.

Group chairman GM Rao said it had not made any plans to exit Istanbul airport. “We’re working on portfolio management strategy but not selling any stake here,” he said.

The GMR Group holds a 40 per cent stake in the airport while Malaysian Airports Holding has 20 per cent and the remaining 40 per cent is with Limak Holdings of Turkey.

Recently, there were reports suggesting the group was looking at offloading some of its assets, and the Istanbul Airport was a part of the process for cutting down its around Rs 40,000-crore debt.

Speaking at The Indus Entrepreneurs Summit here today, he said the final award of $ 325 million Philippines airport modernisation project would be out in the next 2-3 days. Confident of winning the contract, Rao said, “we are the highest technically qualified and the highest bidder here.”

For the Mactan-Cebu International airport in the Philippines, GMR is a part of the consortium that includes Philippines-based Megawide Construction. GMR has a 40 % stake in the consortium.  

In the not-so-happy Male airport in the neighbouring Maldives, Rao said, if the Maldives government invited them to run the airport, they we're ready to do that. However, there had been no such move till now from the newly-elected government, he added.

The government of Maldives last year had terminated the group’s contract to upgrade the airport and also build a new airport. “The termination happened without any wrongdoing from our side. It was a political move,” said Rao. The group is awaiting the outcome of $1.4-billion arbitration filed by it in the Singapore Court involving the Maldives government in the case.

On participating in the future airport development projects, he said: “We would participate in projects where the bidding is transparent.”

GMR Infra stock closed at Rs 21.50 on Thursday, up 0.23 per cent from the previous day’s closing.