GMR Airports Limited (GAL) has successfully concluded the acquisition of an 11% stake in GMR Hyderabad International Airport (GHIAL) from Malaysia Airports Holdings Berhad (MAHB) Group. Following this transaction, GAL’s ownership in GHIAL, the entity overseeing Hyderabad International Airport, has risen from 63% to 74%, as stated in filings made by the company on Friday. Valued at approximately $100 million, this deal marks a significant move by the GMR Group to consolidate its principal assets.
GAL operates as a subsidiary of GMR Airports Infrastructure Limited, while GHIAL functions as a subsidiary of GAL. Meanwhile, the Telangana government and the Airports Authority of India will each retain a 13% stake in GHIAL.
Previously, GMR Airports had disclosed the share purchase agreement between Malaysia Airports Holdings Berhad (MAHB) and its wholly owned subsidiary, MAHB (Mauritius) Private Limited (MAMPL), on October 25th of the preceding year. Notably, MAHB Group had acquired the 11% stake from GMR back in 2009 for USD 10 million. The efforts by the Kuala Lumpur-based group to rationalize its investments and unlock value from non-core assets are in alignment with its overarching growth strategy.
Hyderabad airport’s passenger traffic surpassed 1.86 crore as of December 31, marking the highest year-to-date figure ever recorded for the airport.
About GMR Airports Limited
GMR Airports Infrastructure Limited, a subsidiary of GEPL, focuses on airport development, operation, maintenance, and integrated security solutions. It operates through GMR Airports Limited (GAL) for airports and RAXA Techno Security Solutions for security.
GAL is a prominent global airport developer with key assets like Delhi International Airport, Hyderabad International Airport, and Mactan Cebu International Airport. It has expanded its portfolio with projects in Goa, Greece, and Andhra Pradesh, and ventures into Indonesia. GMR Group pioneers Aerotropolis development around airports in Delhi, Hyderabad, and Goa.
About GMR Hyderabad International Airport (GHIAL)
GMR Hyderabad International Airport Limited (GHIAL), a joint venture led by the GMR Group (63%), along with the Airports Authority of India (13%), the Government of Telangana (13%), and Malaysia Airports Holdings Berhad (MAHB) (11%), was established to develop and manage Rajiv Gandhi International Airport (RGIA) in Hyderabad.
The project, based on the Public Private Partnership (PPP) model, aimed to create a world-class Greenfield airport surrounded by an Airport City, fostering commercial and social activities. Inaugurated on March 14, 2008, with an initial capacity of 12 million passengers per annum (MPPA) and 150,000 tons of cargo handling capacity per annum, the airport has since grown to handle over 21 million passengers and around 148,000 tons of cargo annually. With a flexible master plan allowing for phased expansion, the airport is positioned as a gateway to South & Central India, connecting to international and domestic destinations.
About Malaysia Airports Holdings Berhad (MAHB) Group
Malaysia Airports Holdings Berhad (MAHB) Group has undergone significant transformation since its inception in 1992, evolving from a state-run operator to Malaysia Airports Berhad, and later Malaysia Airports Holdings Berhad in 1999, becoming the first Asian airport operator to go public. Today, it manages 39 airports across Malaysia and one in Turkey, focusing on airport management, operations, and development. Revenue streams include aeronautical operations and commercial activities like duty-free shops and hotel operations.
The company’s business model prioritizes both airport operations and commercial growth opportunities. Moving forward, Malaysia Airports aims to be a global airport group emphasizing connectivity and sustainability. Diversification of business activities has enabled the company to maintain competitive aviation charges, deliver returns to shareholders, and support remote airports crucial for rural connectivity, particularly in Sabah and Sarawak.
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