Malaysia Airports Holding (MAHB) has cancelled the deal to sell its stake in GMR Hyderabad International Airport (GHIAL) to India’s GMR Airports.
Under the agreement signed in February last year, MAHB agreed to sell its 11% interest in GMR Hyderabad International Airport (GHIAL) to GMR Airports for $76m, as reported by The Press Trust of India.
At the time, MAHB stated that the sale was aimed at unlocking its investment value as part of its portfolio rebalancing strategy.
Elaborating on the reason to terminate the sale, the Malaysian airport operator claimed that GMR failed to meet the obligations under the agreement before 31 December.
In a regulatory filing, MAHB said: “The board of directors of MAHB wishes to announce that the SPA has been automatically terminated due to failure of the purchaser to complete their obligation in accordance with the terms of the SPA by 31 December 2018.
“Therefore, MAHB and MAHB (Mauritius) Private Limited shall remain as shareholders of GHIAL accordingly.”
GHIAL currently manages the Greenfield airport Rajiv Gandhi International Airport under a public, private partnership model.
Currently, GMR owns a 63% stake while Airports Authority of India (AAI) and the Telangana government hold 13% and 11% stakes respectively.
Malaysia Airports was incorporated in 1991. The company manages most of the airports in Malaysia and has been expanding overseas in Sabiha Gocken International Airport in Turkey.