GMR keen on buying partners' stake in airports

The GMR Group is willing to buy stakes held by minority partners in all the three airports it operates if there is any such offer, the group's chief financial officer A Subba Rao said on Monday.

"We will certainly consider if the stakeholders come forward with an offer. If a minority partner wants to sell its stake, naturally we have the first opportunity to buy," Subba Rao told PTI.

Rao referred the example of IDFC, which had 3.9 per cent stake in the New Delhi Airport and later swapped equity for GMR Infra stake.

Though none of their partners in the airports so far offered to sell their share, he said it is natural in any joint venture business.

The GMR Group operates two international airports in India (New Delhi and Hyderabad) and one in Turkey (the Sabiha Gokcen International Airport, Istanbul).

Malaysia Airports Holdings Berhad is the minority partner with 11 per cent and 10 per cent stakes in the Hyderabad airport and the New Delhi airport respectively.

Fraport, German airports developer, holds 10 per cent stake in the New Delhi international airport.

Malaysian Airports Holding is a minority partner in Istanbul airport with 20 per cent stake.

In a recent interview to a business magazine, the GMR Group chairman GM Rao said if their airport partners, such as Fraport and Malaysia Airports, want to sell their equity, they would like to buy it.

"It is not our corporate policy to comment on speculation or on the possible purchase or divestiture of our holdings in airports around the world," Fraport said.

An email query sent to Malaysian Airports Holding went unanswered.