M’sia: MAHB takes control of Turkish airport jobs

Malaysia Airports Holdings Bhd (MAHB) is buying over joint venture partners GMR Infrastructure Ltd (GMRI) and GMR Infrastructure (Global) Ltd's (GMRIG) 40% stake in two companies that manage Sabiha airport and other services for RM1 billion (US$303 million).

GMRI is selling its stake in Istanbul Sabiha Gokchen Uluslararasi Havalimani Yatirim Yapim ve Isletme AS (ISG), while GMRIG is selling its stake in LGM Havalimani Isletmeleri Ticaret ve Turizm AS (LGM).

ISG's core business is the management of airport operations in Sabiha Airport, while LGM is to establish and operate hotels, lounges and retail outlets at the airport. ISG holds a 22 year concession agreement to operate Sabiha Airport.

The deal will accord MAHB with majority stakes in ISG and LGM.

"The proposed acquisitions are part of MAHB's plans to enhance and diversify its assets and earnings base to improve its long term growth prospects. The Proposed Acquisitions will allow MAHB to have majority stakes in each of ISG and LGMand further strengthen it s foothold and influence as an airport operator at Sabiha Airport in Turkey," MAHB said in its filing to Bursa Malaysia.