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GMR signs shareholders' agreement with Indonesia's Angkasa Pura II for Medan Airport, Indonesia

Posted On : 2021-12-24 17:23:49( TIMEZONE : IST )

GMR signs shareholders' agreement with Indonesia's Angkasa Pura II for Medan Airport, Indonesia

GMR Airports Netherlands B.V., a step down subsidiary of GMR Airports Limited (GAL), on December 23, 2021, signed the Shareholders' Agreement (SHA) and Share Subscription Agreement (SSA) with Angkasa Pura II (AP II) for the development and operation of Kualanamu International Airport (Project) in Medan, Indonesia. The letter of award for the project was received on 23rd November 2021.

With the signing of the agreements, GMR enters into 49:51 partnership with APII, the state owned enterprise and the bidding authority for the Kualanamu International Airport. The consortium will transform Kualanamu International Airport into Western International hub of Indonesia.

The project scope includes operation, development and expansion of the airport over a period of 25 years. Kualanamu International Airport is an operating Airport with healthy cash flows.

Medan is the fourth largest urban area in Indonesia and is the capital of North Sumatra province, with a population of over 3.4 million. The airport handled more than 10 million passengers in 2018.

Earlier in November 2021, APII had completed the final evaluation process for selection of strategic partnership for the Kualanamu International Airport and had announced GMR Airports as the winning bidder. GMR Airports Limited and its 100% subsidiary, GMR Airports International B.V had bid for the project as a consortium. GMR Airports won the bid for this high growth potential brownfield Airport, through a closely contested international competitive bid process.

Commenting on the development, Mr. Srinivas Bommidala, Chairman Energy & International Airports, GMR Group, said, "GMR's entry into the Indonesian aviation sector is a significant step in support of the Indian government's policy to 'Look East'. The Hon'ble Prime Minister has given a further clarion call to 'Act East' and GMR is pleased to demonstrate commitment to this call by acting in leveraging its expertise for cementing this key partnership in Indonesia. With our global aviation expertise, we aspire to transform Kualanamu International Airport into a Western International hub of Indonesia and contribute to the overall infrastructure development of the country. Our partnership with Angkasa Pura II (AP II) is testimony to the trust placed in us by the Indonesian government and authorities. We will strive to bring our best to this beautiful and strategic country of ASEAN."

The agreements signing ceremony was attended by the Deputy Minister of State Owned Enterprises - Mr. Kartika Wirjoatmodjo, AP II President Director - Mr Muhammad Awaluddin and Directorate General of Civil Aviation - Mr Novi Riyanto.

Shares of GMR Infrastructure Limited was last trading in BSE at Rs. 42.65 as compared to the previous close of Rs. 42.65. The total number of shares traded during the day was 1458252 in over 3303 trades.

The stock hit an intraday high of Rs. 43.15 and intraday low of 42.15. The net turnover during the day was Rs. 62083806.00.

Source : Equity Bulls


GMRInfrastructure INE776C01039 GMRINFRA GMRAirports AngkasaPuraII