GMR Infrastructure, on Wednesday said it has obtained Rs 1,740 cr (Euro 209 Million) as culmination of divestment of its 40 % value share in Istanbul Sabiha Gökçen Uluslararasi Havalimani Yatirim, Yapim Ve Isletme A.S (“ISG”) & LGM Havalimani Isletmeleri Ticaret Ve Turizm A.S (“LGM Tourism”) to Malaysian Air-ports Holding Berhard (“MAHB”) with regards to specified contracts signed following to the exercise of Right of First Rejection by MAHB under the existing shareholders contract of ISG, on 23 Dec 2013.
This is the 2nd major divestment of overseas resources by the GMR Group in over a year. This divestment allows the group in taking advantage of value launch of Rs 1,740 cr, moreover to decreasing the related debts of Rs1, 412 cr carried in the balance sheet in addition to guarantees to an level of Rs 2,298 cr.
Commenting on this transaction, G M Rao, Group Chairman, GMR Group said, “This transaction represents GMR’s capability & consistent delivery in judgment the best value for its resources & also to execute and complete a complex, cross boarder transaction at a time when the infrastructure segment is passing during a rough phase. GMR will keep be a significant global airport operator with the lately won concession for developing Mactan Cebu International Airport in Malaysia & will keep add “Right Assets” to maintain significant levels of earnings & resources. We at GMR Group continue focus on investment recycle, creating assets and improve value by effective profile management under our ALAR (Asset Light Asset Right) Strategy. The efforts taken by the Group recent times shall strengthen our Balance Sheet”
The consortium of Limak Holding, GMR Group & MAHB was selected as the preferred bidder for improving & maintaining the Istanbul Sabiha Gökçen International Airport terminal in July 2007. The airport’s new airport terminal was completed in a record time span & was commissioned in October 2009, 12 months forward of schedule. LGM Tourism & undertakes the operation of non-aero services for example hotel, food & beverages, & lounge at the airport.
Rothschild (India) & White & Case LLP acted as Financial Advisors & Legal Counsels respectively to GMR Group.
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