INDIAN-INTERNATIONAL AFFAIR!

GMR INFRA GEARING FOR AN EXIT FROM TURKISH AIRPORT

The Bangalore-based publicly-held infrastructure developer,GMR Infra, is understood to have
kick-started the process to exit from the Istanbul Sabiha Gokçen International Airport, which it
manages in Turkey.
In this project, the company holds 40 per cent stake, involving
a capital expenditure of $550 million, since May 2008. While
GMR is understood to have invested a little over $60 million
as its equity share in the company, senior GMR Group officials say they will be looking to realise at least 1.5-2 times
their investment. That translates into a little over $100 million, as
and when an exit is structured.
Senior GMR Group management officials said this exit was part of the articulated strategy the company embarked upon mid
last year. The strategy mainly is 'develop-build-create value-
divest'. An official GMR Infra spokesperson, however, declined
to comment, saying it was speculation.
During the year ended March 2013, the airport, which has a
capacity to handle 25 million passengers annually, saw a
traffic of 15.34 million
passengers, growth of 11 per cent from 2011-12. Its revenue
for 2012-13 grew 30 per cent from the previous year to Rs 325 crore. But the company's loss in
the year stood at Rs 123 crore,an increase of 18 per cent from
that in 2011-12, mainly on account of a 14 per cent increase
in financing costs.
GMR Infra's exit from this project,expected this year, will mark the company's waning global presence after a very aggressive
expansion. Early this year, the company exited its 70 per cent
stake in a gas-fired power project in Singapore, realising
around $125 million. Later, it also sold its stake in coal mines in
South Africa, raking in around $.50 million.
Besides Turkey's Istanbul Sabiha Gokçen International Airport,GMR Infra has presence in Indonesia, too. It holds stakes in
two coal mines with an investment of close to $600 million. The company has, over
the past two years, divested its stake in Intergen Global power
project, making close to $900 million. Late last year, it also saw
an unceremonious exit from the Male International Airport, which involved a total outlay of $500
million, over alleged irregularities during the bidding process and for levying development fees. It is understood GMR is now gearing up to bid for an airport project in Philippines, with a total outlay of $400 million.