हिंदी खबर
Representative Image
Representative Image

GMR Group to divest its entire 40 per cent stake in Philippines' Cebu airport

ANI | Updated: Sep 02, 2022 13:28 IST


New Delhi [India], September 2 (ANI): GMR Group on Friday said it has signed definitive agreements to divest its entire 40 per cent stake in Mactan Cebu International Airport in the Philippines for an upfront payment of Rs 1,330 crore.
GMR Airports International, a stepdown subsidiary of GMR Infrastructure Limited, has entered into definitive agreements with Aboitiz InfraCapital Inc (AIC), for AIC to acquire shares in GMR-Megawide Cebu Airport Corporation (GMCAC), GMR Group said in a statement.
GMCAC, which is a joint venture between GMR Airports International BV (GAIBV) and Megawide Construction Corporation (MCC), is the developer and operator of Mactan Cebu International Airport (MCIA).
GAIBV and MCC have agreed to sell down their existing stakes in GMCAC to accommodate the entry of AIC, GMR Group said.
The agreement involves GMCAC's issuance of primary shares and the transfer of secondary shares from Megawide and GAIBV to AIC amounting to PhP 9.5 bn, which will result in the latter owning 33 and 1/3 per cent minus 1 share stake in GMCAC. Simultaneously with the above, the transaction likewise involves the issuance by Megawide and GAIBV of Exchangeable Notes for PhP 7.75 bn each aggregating to amount of PhP 15.5 bn (Notes).
The Notes will mature on 30th October 2024 and will be exchanged by AIC for the remaining 66 and 2/3 per cent plus 1 share of GMCAC's outstanding capital stock.
The transaction will be undertaken at an enterprise value of PhP 49.7 billion (Rs 7,050 crore) and GAIBV will receive an upfront amount of PhP 9.4 bn (Rs 1330 crore) in lieu of the shares being transferred, and Notes being issued.
We would continue to operate as the Technical Services Provider to GMCAC until December 2026, would also be entitled to additional deferred consideration based on the subsequent performance of GMCAC for the same period, GMR Group said.
Commenting on the divestment, Srinivas Bommidala, Business Chairman - International Airports, GMR Group, said, "We are happy to welcome and partner with Aboitiz InfraCapital (AIC) at Mactan-Cebu International Airport. In the last 8 years, we have completed the expansion plan and have been one of the fastest growing airports in the region which led to steady returns. With AIC's deep expertise in the region, we are confident that Cebu Airport will reach new heights."
"The decision to divest our stake in GMCAC is also in line with GMR Airport's strategy to focus on deleveraging and redeploying capital in high growth opportunities. Further, we have strengthened our position in the Asia Pacific Region by partnering with AP2 in developing and operating the Kualanamu International Airport at Medan, Indonesia," Bommidala added.
AIC is the infrastructure arm of the Aboitiz Group, which is recognized as one of the best-managed companies in the Philippines and in Southeast Asia. AIC aims to build purpose-driven infrastructure and serve as one of the building blocks of the country's economy. The company develops and operates economic estates, water facilities, digital infrastructure, and transport & mobility projects that enable businesses and uplift communities. The transaction is subject to customary regulatory approvals in the Philippines, GMR Group said in the statement. (ANI)

Loading...
iocl
iocl