GMR completes divestment of Istanbul airport, gets Rs 1,740 crore

GMR Infrastructure on Wednesday said it has completed the divestment of its 40 per cent stake in the Istanbul international airport in Turkey to Malaysian Airports Holding Berhard (MAHB) and has received a payment of Rs 1,740 crore for the same.

In December last year, the Bangalore-based company had announced to completely exit from the Istanbul Airport and its consortium partner MAHB had exercised the right of first refusal for acquiring GMR's stake in the venture for Rs 1,740 crore (209 million euros).

GMR had a 40 per cent stake in the consortium, of which MAHB and Limak Holding were other partners.

Both GMR and MAHB had signed definitive agreements under the existing shareholders agreement of Istanbul international airport on December 23, 2013.

"GMR Infrastructure is pleased to announce receipt of Rs 1,740 crore as culmination of divestment of its 40 per cent equity stake in Istanbul Sabiha Gokcen Uluslararasi Havalimani Yatirim, Yapim Ve Isletme A.S (ISG) and LGM Havalimani Isletmeleri Ticaret Ve Turizm A.S (LGM Tourism) to MAHB...," the company said in a statement.

This is the second major divestment of overseas assets by the GMR Group in over a year, it added.

"This divestment helps the group in capitalising on equity release of Rs 1,740 crore in addition to reducing the proportionate debt of Rs 1,412 crore (169.55 million euros) carried in the balance sheet as well as guarantees to an extent of Rs 2,298 crore (276.03 million euros)," the company further said.

The consortium of Limak Holding, GMR Group and MAHB was selected as the preferred bidder for upgrading and maintaining the Istanbul Sabiha Gokcen International Airport in July 2007.