GMR Infra up 5%, stake sale in Istanbul airport to cut debt

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Moneycontrol Bureau

Shares of GMR Infrastructure rallied around 5 percent in intraday trade on Tuesday as the company is offloading its stake in Istanbul airport. The Bangalore-based listed developer, is set to sell its entire 40 percent stake in Istanbul’s Sabiha Gökçen International Airport for euro 225 million (Rs 1,900 crore) to Malaysia Airport Holdings Berhad (MAHB).

MAHB holds 20 percent stake in the Turkey project and Turkey-based Limak Construction holds another 40 percent.

The stake sale will help the company to reduce its huge debt which has grown to Rs 40,000 crore. In an interview to CNBC-TV18 on Monday, Madhu Terdal, Group CFO of the company said that proceeds of the sale will be used substantially to reduce their corporate debt and for equity funding of some of their energy projects. (Read the interview here)

Meanwhile, the MAHB has exercised its right of first refusal (ROFR) to acquire the stake in the company and is in the evaluation process.

Talking about the company further plans, Terdal said, “We are already in the race for Philippines Airport. What is important is we will have to balance growth as well as our operationalisation of assets. So, whatever is required to this we will continue to adopt that policy.”

At 09:20 hrs, the stock was quoting at Rs 24.50, up Rs 0.65, or 2.73 percent on the BSE.