Graphic By TMR
Malaysia Airports Holdings Bhd (MAHB) is disposing of its entire remaining 11% stake in GMR Hyderabad International Airport Ltd to GMR Airports Ltd for RM295.3 million cash.
In a filing to Bursa Malaysia last Friday, the airport operator noted that the proposed disposal provided an opportunity to unlock its investment in GMR Hyderabad at an attractive value.
The move is part of MAHB’s portfolio rebalancing strategy and the proceeds are intended for general corporate purposes and expenses in relation to the proposed disposal.
The company said the cash consideration for the proposed disposal was arrived on a willing buyer willing seller basis based on a fair market valuation report and the prospect of GMR Hyderabad in the concession- based airport operation and development business.
The deal is expected to be completed by April 30, 2018, subject to an extension of up to Dec 1, 2018. MAHB shares closed 13 sen or 1.4% higher last Friday to RM9.18, giving it a market capitalisation of RM15.2 billion.
Meanwhile, in other corporate news, billionaire Tan Sri Quek Leng Chan has stood down as the chairman of Hong Leong Capital Bhd (HLCB) effective last Friday.
The financial group noted Quek’s resignation is in line with the group’s internal restructuring.
The 74 years old Malaysian tycoon co-founded Hong Leong Financial Group Bhd (HLFG) in 1963 with his cousin and fellow billionaire Kwek Leng Beng who oversees the Singapore operations.
HLCB added that Tan Kong Khoon, who was the company’s non-ED and non-independent, will assume the post of chairman.
Tan was appointed to the board of HLCB on Feb 24, 2016. The 60-year-old is also a director of HLFG and Hong Leong Bank Bhd (HLBB), both companies listed on the Main Market of Bursa Malaysia.
He is also director of public companies including Hong Leong Assurance Bhd and Hong Leong Investment Bank Bhd. Tan was HLBB group MD and CEO from July 1, 2013, to Feb 4, 2016.
Before joining HLBB, he served as the head of, consumer banking group of DBS Bank Ltd from Dec 1, 2010, to April 15, 2013, where he led and managed strategy formulation and execution for consumer banking globally across the DBS Group.