Malaysia Airports Holding Berhard (MAHB) has announced plans to launch a rights issue to fund the acquisition of the remaining 40% equity stake in Istanbul Sabiha Gokcen Airport (ISG) from GMR Infrastructure.
According to sourcers MAHB will issue rights for 274.8 million new shares. It hopes to complete the exercise by the first quarter of next year. CIMB and Maybank Investment Bank are advisors.
The transaction was closed in May this year. It was executed in terms of definitive agreements signed subsequent to the exercise of Right of First Refusal by MAHB under the existing shareholders agreement of ISG, on 23 December 2013.
The total transaction value is estimated at €285 million (US$356.8 million).
On December 13th, the local press reported GMR Infrastructure had entered into a definitive agreement with Turkey's TAV Airports Holdings to sell its 40% stake in Istanbul's Sabiha Gokcen International Airport for €220 million. However, MAHB exercised its right of first refusal and finally acquired the stake.
The airport's new terminal was completed in a record time and was commissioned in October 2009, 12 months ahead of schedule. LGM Tourism undertakes the operation of non-aero services such as hotel, food & beverages, and lounge at the airport.
GMR's equity investment at ISG was around €71.6 million.
Sabiha Gokcen is one of Istanbul's two airports, located on the Asian side of the city, and handled 15.7 million passengers in the first ten months of 2013.