It’s consolidation time for GVK

Mumbai: The Hyderabad-based GVK group is consolidating some of its group companies, including two investing firms of Mumbai International Airport (MIAL) under GVK Power and Infrastructure (GVKPIL), which is a listed entity. Leading private equity investors such as Citigroup and Temasek have held talks with the group to pick up equity stake in GVKPIL, post-restructuring.
The infrastructure major is likely to seek Sebi approval for amalgamating the group companies in the next couple of weeks, sources say. MIAL is a JV between the GVK-SA consortium and Airports Authority of India, with GVK-SA holding 74% stake.
Each group company is expected to be valued by independent valuers, before arriving at an appropriate swap ratio.
The consolidation plan was initiated after the stock price of GVKPIL nose-dived soon after listing on the local exchanges.
GVK is in dialogue with half-a-dozen domestic/international construction companies, including L&T, to start the restructuring of Mumbai international airport run by MIAL. “We hope to start work by January-end or early February,” said a company official.
MIAL had submitted a master plan to Airport Authority of India (AAI) on October 3, 2006, and a final clearance is still awaited. MIAL has drawn up a massive Rs 6,000 crore capex programme over the next seven years.
01/01/07 Anto Joseph/Economic times

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