Malaysia Airports Holding Berhad (MABH) has announced that the share purchasing agreement with the GMR Group for selling its 11 per cent stake has been terminated as the infrastructure company failed to fulfil the obligations as per the agreement before December 31.

Last year in February GMR Infrastructure Ltd declared that its subsidiary GMR Airports Ltd. entered into an agreement with MAHB and its subsidiary for US$ 76 million in order to acquire 11 per cent of the stake that the Malaysian company is holding in GMR Hyderabad International Airport.

MAHB in its regulatory filing said that “The board of Directors of MAHB wishes to announce that the SPA has been automatically terminated due to failure of the purchaser to complete their obligation in accordance with the terms of the SPA by Dec. 31, 2018. Therefore, MAHB and MAHB (Mauritius) Private Limited shall remain as shareholders of GHIAL accordingly.”

GHIAL is a special purpose vehicle that manages Rajiv Gandhi International Airport. Expect of MAHB, GAL also currently holds 63 per cent stake and the remaining in the special purpose vehicle is held 13 per cent each by the Airports Authority of India and the Telangana government.