GMR Infrastructure sells stake in Istanbul

GMR Infrastructure is set to sell its entire 40 percent stake in Istanbul’s Sabiha Gökçen International Airport for $309 million to Malaysia Airport Holdings Berhad (MAHB).

Malaysia Airport Holdings currently holds a 20 percent stake of Sabiha Gökçen International Airport, in addition to GMR and Limak Construction, a Turkish company which holds the remaining 40 per cent.

MAHB decided to buy the stake using its ‘right-of first-refusal (RoFR)’ after the GMR Group had reportedly entered into a definitive agreement with Turkey's TAV Airports Holdings.

“On December 3, 2013, a prospective investor of Sabiha Airport entered into a share purchase agreement with the GMR Group to acquire the acquisition shares for a total consideration of euro 2,25,000,000. The completion of such share purchase agreement was conditional, amongst other matters, on MAHB not exercising its RoFR in relation to the acquisition shares. On December 23, 2013, MAHB exercised its RoFR through MAMSC,” MAHB said in a regulatory filing.

The GMR Infrastructure consortium had entered the Sabiha Gökçen International Airport project in May 2008 and has the rights to operate the airport untill 2030.

Indian newspapers report that the GMR Group has a debt burden of around $6.6 billion and a part of the proceeds the Istanbul airport sale will be used mitigate a portion of the debt.

With this sale of Sabiha Gökçen Airport, the Bangalore-based company will exit its second international airport venture, as it was unceremonious dismissed from managing Ibrahim Nasir International Airport over alleged irregularities during the bidding process and trying to levy development fees.