On Friday, GMR Group said it is likely to divest its 40 per cent stake in Mactan Cebu international airport in the Philippines for an upfront payment of Rs 1,330 crore. Currently, the airport is being operated by GMR-Megawide Cebu Airport Corporation (GMCAC). GMR Airports International BV (GAIBV) holds a 40 per cent stake in this venture.

GAIBV and Aboitiz InfraCapital Inc (AIC) have signed a definitive agreement for the divestment of stake in the airport. The stake is being divested due to the shifting focus on deleveraging GMR Airports Ltd and churning assets for higher returns on investment. Aboitiz InfraCapital is the infrastructure arm of the Aboitiz Group. It pursues infrastructure projects that address the evolving needs of Filipinos.

GMR Group’s Business Chairman for International Airports, Srinivas Bommidala, said that the company had strengthened its position in the Asia Pacific Region by partnering with AP2 to develop and operate the Kualanamu International Airport at Medan in Indonesia.

Founded in 1978 by Grandhi Mallikarjuna Rao, GMR Group comprises several companies, including GMR Airports, GMR Infrastructure, GMR Energy, and GMR Enterprises. Headquartered in New Delhi, GMR Group won the Cebu airport project in 2014.

Apart from Cebu airport, it operates the airports at Delhi, Hyderabad and Bidar (Karnataka. The company is also developing airports in Greece and Indonesia. GAIBV is a step-down subsidiary of GMR Infrastructure Ltd and a direct subsidiary of GMR Airports Ltd. Shares of GMR Infrastructure rose 2.86 per cent to Rs 39.50 apiece in morning trade on BSE.