GMR Group on Friday said it will sell its entire 40% stake in Cebu International Airport in the Philippines for an upfront payment of ₹1,330 crore as well as earnings to be received over a period of more than four years.
The airport is being operated by GMR-megawide Cebu Airport Corporation (GMCAC) and GMR Airports International BV (GAIBV) holds a 40% stake in the venture.
A definitive agreement has been signed between GMR Airports International BV (GAIBV) and Aboitiz InfraCapital Inc (AIC) for disinvestment of stake in Cebu Airport. AIC is the infrastructure arm of the Philippines-based Aboitiz Group.
According to a regulatory filing, the stake disinvestment is being done as part of a focus on demerging GMR Airports Ltd and churning out assets for higher return on investment.
“The transaction will be carried out at an enterprise value of PhP 49.7 billion (₹70.5 billion) and GAIBV will receive an advance of PhP 9.4 billion (₹13.3 billion) in lieu of shares being transferred and notes being issued.
“We will continue to serve GMCAC as a technical service provider until December 2026, (and) will also be entitled to additional deferred consideration based on GMCAC’s subsequent performance for the same period,” the filing said.
PhP refers to Philippine Pesos.
GMR Group won the Cebu Airport Project in 2014.
Srinivas Bommidala, Business Chairman – International Airports, GMR Group, said the decision to sell stake in GMCAC was also in line with GMR Airport’s strategy to focus on diverting and redeploying capital into high growth opportunities.
“In addition, we have strengthened our position in the Asia Pacific region by partnering with AP2 in the development and operation of Kuala Namu International Airport in Medan, Indonesia,” he added.
GMR Group is operating airports at Delhi, Hyderabad and Bidar (Karnataka) besides Cebu airport. Among other things, it is also developing airports in Greece and Indonesia.
GMR Airports International BV (GAIBV) is a step-down subsidiary of GMR Infrastructure Limited and a direct subsidiary of GMR Airports Limited.