Malaysia Airports Holdings (MAHB) has announced the acquisition of the remaining 40% stake at Turkey's Istanbul Sabiha Gokcen (ISG) International Airport for an estimated amount of €285m.
Including the acquisition of LGM, the firm that operates services within the airport from the Limak Group, this move gives MAHB full control over Istanbul's second largest airport.
MAHB will soon enter into an agreement to acquire the 40% interest in ISG and LGM, and expects to complete the transaction by early 2015.
Initially, MAHB, Limak and GMR formed a 20-40-40 consortium in 2008 for the development of the green field airport with the capacity of 25 million passengers and MAHB was the designated airport operator partner.
Earlier this year, MAHB increased its interest in ISG and LGM from 20% to 60% after acquiring a 40% stake from GMR and obtained joint control with the Limak Group.
Commenting on the acquisition, MAHB managing director Datuk Badlisham Bin Ghazali said, "The successful acquisition of ISG and LGM is a significant milestone for MAHB. This acquisition gives MAHB access to an attractive offshore asset and will enhance MAHB's presence in Turkey.
"Furthermore, it is testament to our confidence in the continued great performance of our Turkish management team in ISG and our commitment to this strategic investment. Going forward we expect that the combined operations of ISG and LGM together with MAHB will be further enhanced."
The airport will continue to be managed by the existing Turkish leadership team. The company stated that ISG has experienced growth of 29% in the first nine months of 2014 and has carried more than 22 million passengers in the last twelve months.
Image: Istanbul Sabiha Gokcen International Airport, Turkey. Photo: courtesy of Istanbul Sabiha Gokcen International Airport.