GMR Airports International BV (GAIBV), 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).
GMCAC, which is a joint venture between GAIBV and Megawide Construction Corporation (MCC), is the developer and operator of the award-winning Mactan Cebu International Airport (MCIA).
Also Read: GMR Infra Consolidated June 2022 Net Sales at Rs 1,443.97 crore, down 18.69% Y-o-Y
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 billion, which will result in the latter owning 33 and 1/3 per cent minus one share stake in GMCAC.
Simultaneously, the transaction likewise involves the issuance by Megawide and GAIBV of Exchangeable Notes for PhP 7.75 billion each aggregating to amount of PhP 15.5 billion (Notes).
The Notes will mature on October 30, 2024 and will be exchanged by AIC for the remaining 66 and 2/3 per cent plus one share of GMCAC’s outstanding capital stock.
''In the last 8 years, we have completed the expansion plan and have been one of fastest growing airports in the region which led to steady returns.'' said Mr. Srinivas Bommidala, Business Chairman – International Airports, GMR Group
''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,'' he added.
A portion of the primary investment into GMCAC will be used for acquisition by it of identified entities providing services at Cebu Airport.
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.
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