<article><a href="http://dealstreetasia.com/tag/mahb" target="_blank" rel="noopener">Malaysia Airports Holding Berhad </a>has terminated the share purchasing agreement it had signed with the <a href="http://dealstreetasia.com/tag/gmr" target="_blank" rel="noopener">GMR Group</a> to sell its 11 per cent stake in <a href="http://dealstreetasia.com/tag/ghial" target="_blank" rel="noopener">GMR Hyderabad International Airport Ltd (GHIAL).</a></article>

<a href="http://dealstreetasia.com/tag/mahb" target="_blank" rel="noopener">Malaysia Airports Holding Berhad </a>has terminated the share purchasing agreement it had signed with the <a href="http://dealstreetasia.com/tag/gmr" target="_blank" rel="noopener">GMR Group</a> to sell its 11 per cent stake in <a href="http://dealstreetasia.com/tag/ghial" target="_blank" rel="noopener">GMR Hyderabad International Airport Ltd (GHIAL).</a>
According to an official statement, the Indian infrastructure major did not fulfill the obligations as per the agreement before December 31, 2018.
“The Board of Directors of MAHB wishes to announce that the SPA (share purchase agreement) has been automatically terminated due to failure of the purchaser to complete their obligation in accordance with the terms of the SPA by 31 December 2018. Therefore, MAHB and MAHB (Mauritius) Pvt Ltd shall remain as shareholders of GHIAL accordingly,” the Malaysian airport operator said, in a filing in the Kuala Lumpur stock exchange.
In February last year, GMR Airports, a subsidiary of infrastructure major GMR Group, had signed an agreement with MAHB to acquire the latter’s 11 per cent stake in GMR Hyderabad International Airport Ltd for $76 million.
GMR Hyderabad International Airport is a special purpose vehicle formed to build and operate the Rajiv Gandhi International Airport in the city for a concession period of 60 years starting March 2008.
Post the acquisition, GMR Airports’ stake in GHIAL was to increase to 74 per cent from 63 per cent. The Airports Authority of India and Telangana government hold 13 per cent each in the firm.
According to an understanding between the two parties while signing the SPA, the price was based on the assumption that the transaction takes place on or before December 1, 2018. If the process is not completed by December 1, 2018, the agreement will be terminated unless otherwise agreed, it had stated then.
In a another filing in December MAHB had said it had extended the “long stop” date to December 31, 2018. It did not provide more details.
The development comes in the midst of GMR&#8217;s ongoing plans to list its airports airport business GMR Airports Ltd (GAL).
To clear the decks for the IPO, in October, GMR had agreed to pay Rs 3,560 crore to PE firms SBI Macquarie, Standard Chartered Private Equity, JM Financial, Old Lane and others as part of a settlement in an arbitration. The payment was to be made to the PE majors in lieu of their entire holding of compulsorily convertible preference shares in GAL. In addition, the PE investors were also to acquire a 5.86 per cent stake in the airport business valuing GAL at Rs 21,000 crore.
As per the investment agreement, signed during FY11 and FY12, GMR was to provide an exit to the investors either through an IPO, or a buyback in 2015. During the same year, due to lack of exit, the investors initiated arbitration proceedings against the infrastructure company administered by the Singapore International Arbitration Centre.
GMR Airports, a unit of GMR Infrastructure Ltd, also handles four other airport projects in Delhi, the Philippines, Goa and Greece. It had also built and operated an airport in Istanbul that was later sold.
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Malaysia Airports Holding Berhad has terminated the share purchasing agreement it had signed with the GMR Group to sell its 11 per cent stake in GMR Hyderabad International Airport Ltd (GHIAL).

Malaysia's MAHB ends pact with GMR to sell stake in Hyderabad airport

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Malaysia's MAHB ends pact with GMR to sell stake in Hyderabad airport

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