Hyderabad: GMR Infrastructure on Friday said its subsidiary operating the city airport has acquired 44.61 percent stake in joint venture firm MAS GMR Aerospace Engineering Company (MGAE) from its Malaysian partner.
"Post-acquisition MGAE has become a wholly-owned subsidiary of GHIAL (GMR Hyderabad International Airport)," GMR Infrastructure said in a filing with BSE.
GMR Hyderabad International Airport on December 12 acquired 9,67,50,000 shares of face value of Rs 10 each, representing 44.61 percent stake in MGAE, from Malaysia Aerospace for a "nominal" consideration, the filing said.
GHIAL bought the stake from Malaysia Aerospace Engineering SDN BHD (MAE).
Before acquisition of the stake, MGAE was a joint venture company of GHIAL and MAE, the filing said.
The decision to acquire the stake came after the Malaysian partner expressed inability to infuse more funds into the loss making MRO facility, GMR Infra had said earlier.
MAE had informed its Indian partner that its parent, Malaysia Airlines Systems, has been incurring losses for the past few years. The losses have been further aggravated by the mysterious disappearance of Malaysia Airlines' flight MH370 in March this year.
MGAE started commercial operations in November 2011. The company has incurred cumulative losses of Rs 240.30 crore as on March 31, 2014. The promoters have been mostly funding the operations, a GMR official had earlier said.
