Malaysia Airports Holding Berhad (MAHB) has announced that it will sell its 10% stake in Delhi International Airport to GMR Airports for $79m.
The company said that it decided to sell its stake because holding a minority share did not give it enough muscle to exert influence in the venture.
MAHB said in its filing to a Malaysian stock exchange: "MAHB considers the proposed disposal as a strategic opportunity to crystallise its investment after realising the value of its investment in DIAL. MAHB has recently realigned its investment objectives to focus more on investments in companies which it can exercise a significant degree of control over operational decision making.
"As the existing Shareholders Agreement restricts foreign ownership in DIAL to not more 49.0%, MAHB is of the opinion that it would not be in a position to exert influence in DIAL unless it is able to own majority shareholdings in DIAL."
DIAL was set up in 2006 as a joint venture between the GMR group and the Airports Authority of India which held 54% and 26% stake in the airport, respectively. It also had two foreign partners, Fraport and MAHB, both of which held 10% stake each.
The transaction is expected to be completed on or before 30 April, 2015, once it is approved by AAI.
Once MAHB sells its stake, the GMR group's stake in DIAL will rise to 64%.
A subsidiary of GMR Infrastructure, GMR Airports has 63% stake in GMR Hyderabad International Airport that manages and operates the Rajiv Gandhi International Airport at Hyderabad.
Image: The check-in area at the Delhi Intternational Airport. Photo: courtesy of Delhi International Airport.