GMR signs Shareholders’ Agreement with Indonesia’s Angkasa Pura II for Medan Airport

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Biznextindia : GMR Airports Netherlands B.V., a step down subsidiary of GMR Airports Limited (GAL), on December 23, 2021, signed the Shareholders’ Agreement (SHA) and Share Subscription Agreement (SSA) with Angkasa Pura II (AP II) for the development and operation of Kualanamu International Airport (Project) in Medan, Indonesia. The letter of award for the project was received on 23rd November 2021.

With the signing of the agreements, GMR enters into 49:51 partnership with APII, the state owned enterprise and the bidding authority for the Kualanamu International Airport. The consortium will transform Kualanamu International Airport into Western International hub of Indonesia. The project scope includes operation, development and expansion of the airport over a period of 25 years. Kualanamu International Airport is an operating Airport with healthy cash flows. Medan is the fourth largest urban area in Indonesia and is the capital of North Sumatra province, with a population of over 3.4 million. The airport handled more than 10 million passengers in 2018.

Earlier in November 2021, APII had completed the final evaluation process for selection of strategic partnership for the Kualanamu International Airport and had announced GMR Airports as the winning bidder. GMR Airports Limited and its 100% subsidiary, GMR Airports International B.V had bid for the project as a consortium. GMR Airports won the bid for this high growth potential brownfield Airport, through a closely contested international competitive bid process.

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