The Board of Directors (Board) of Malaysia Airports Holdings Berhad (MAHB) wishes to announce that its wholly-owned subsidiary, MALPL, has on 14 March 2018 entered into a Share Purchase Agreement (SPA) with (GMR Holdings or the Purchaser) for the disposal of all of the 8,812,190 equity shares, which represents 23% of the total issued and paid-up share capital of GMIAL to GMR Holdings, receivables and loans for a cash consideration of USD7.3 million (approximately RM28.5 million) subject to the terms and conditions contained in the SPA (Transaction).

The Proposed Disposal was agreed with GMR Holdings (the majority shareholder with 77% shareholding in GMIAL) subsequent to the following events announced and disclosed previously:

• GMIAL was incorporated in the Republic in Maldives on 9 August 2010 to operate, maintain, expand, rehabilitate and modernise the Ibrahim Nasir Airport for a period of 25 years. MALPL has invested a total equity of USD6.9 million (equivalent to RM26.9 million) for the 23% shares in GMIAL.

• On 27 November 2012, the Government of Maldives together with the Maldives Airports Company Limited (MACL) declared that the concession agreement with GMIAL which was awarded in 2010, as void ab initio.

• The dispute was brought to an arbitration tribunal as per the dispute resolution mechanics stipulated under the concession agreement. The arbitration tribunal declared that the concession agreement was valid and binding and was not void ab initio. The arbitration tribunal further declared that the Government of Maldives and MACL were liable in damages to GMIAL for loss caused by wrongful repudiation of the agreement.

• On 16 November 2016, the Government of Maldives had paid a total sum of approximately USD271 million (equivalent to RM1,058 million) being the damages to GMIAL. These funds are expected to be utilised for settlement of GMIAL’s bank borrowings, creditors and other accrual expenses.

The Proposed Disposal is not expected to have any effect on MAHB’s issued and paid-up share capital and/or MAHB’s substantial shareholders’ shareholding in MAHB.

The total carrying value of GMIAL in MAHB’s book has been fully impaired in 2014. As such, the gain arising from the Proposed Disposal is estimated to be USD7.3 million (equivalent to RM28.5 million).

This announcement is dated 27 March 2018.

Remarks: The exchange rate of the United States Dollar (USD) 1.00 : Ringgit Malaysia (RM) 3.9035  being the middle rates prevailing as at 17:00 on 14 March 2018 as published by Bank Negara Malaysia, have been applied in this announcement for illustration purposes.