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MAHB terminates Hyderabad airport stake sale agreement with GMR Group

In GHIAL, GMR Airports Ltd has 63 per cent stake while the AAI and Telangana government have 13 per cent shareholding each

Press Trust of India  |  Hyderabad 

Airport, AAI, Indian airports, Aviation
Representative image

Airports Holding Berhad (MAHB) has terminated the pact to sell its 11 per cent stake in to GMR, saying that the Indian infrastructure failed to fulfil the obligations within the specified time.

While on Wednesday announced it has terminated the share purchase agreement, on Thursday said it is in discussions to enter into a fresh pact with the Malaysian entity.

In February 2018, Infrastructure said its subsidiary Airports Ltd entered into an agreement with and its subsidiary to acquire 11 per cent of owned by them in for USD 76 million.

International Ltd (GHIAL) -- majority-owned by the -- operates the in Hyderabad.

"The board of directors of wishes to announce that the SPA (Share Purchase Agreement) has been automatically terminated due to failure of the purchaser to complete their obligation in accordance with the terms of the SPA by December 31, 2018, MAHB said in a regulatory filing on Wednesday.

"Therefore, MAHB and shall remain as shareholders of GHIAL accordingly," it added.

When contacted, a said discussions are underway to enter into an updated agreement with MAHB.

"The SPA was terminated since the long stop date for meeting various conditions could not be extended. Discussions are underway to enter into an updated agreement," the said.

In GHIAL, has 63 per cent stake while the Airports Authority of (AAI) and have 13 per cent shareholding each.

Shares of declined nearly two per cent to close at Rs 15.65 on the BSE.

First Published: Thu, January 03 2019. 22:05 IST