MALAYSIA: MAHB EXPECTS TO CONCLUDE HYDERABAD DEAL BY YEAREND

KUALA LUMPUR, Malaysia Airports Holdings Bhd (MAHB), which plans to divest its stake in GMR Hyderabad International Airport Ltd (GHIAL) in India, hopes to conclude the sale by yearend.

In the last few years we exited our investment in New Delhi. Earlier this year, we announced we would exit Hyderabad, and we hope to close the deal by the end of this year, Acting Chief Executive Officer Raja Azmi Raja Nazuddin said.

The airport operator disclosed in February the intention to sell its 11 per cent stake in GHIAL for RM295 million to GHIAL’s majority shareholder, GMR Airports Ltd.

Asked if MAHB was looking at new investments in India, he said the company would review any overseas investment opportunity on a casebycase basis to ensure that it was value accretive.

There is nothing concrete yet, but we will need to evaluate and determine which business model we want to get into for overseas investments.

There are three potential business models, namely (major) equity investment like what we did in Turkey, smaller investment like Hyderabad, and operations and maintenance like we did for the Doha Airport, Raja Azmi told reporters after MAHB inked a memorandum of understanding with the Malaysian Investment Development Authority here today to explore potential areas of collaboration.

He signed on behalf of MAHB while the government agency was represented by its Deputy CEO, N. Rajendran.

Commenting on its venture in Turkey, Istanbul Sabiha Gokcen International Airport, Raja Azmi said MAHB was optimistic that the airport would turn a profit within the next two to three years given the airport’s good connectivity.

Source: NAM News Network