GVK to buy Bidvest's MIAL stake soon

Hyderabad: If all goes as planned, infrastructure major GVK Power & Infrastructure Ltd will complete the acquisition of a 13.5% stake of its South African partner Bidvest in Mumbai International Airport Ltd (MIAL) in the next 30 to 60 days.
The company is at an advanced stage of negotiations with Bidvest and the deal is said to be almost done except some final detailing.
"We are talking to Bidvest. The deal should happen in the next couple of months," GVK's CFO Isaac George told DNA.
However, he refused to divulge the price at which negotiations are being held. "We have signed a non-disclosure agreement and we can't indicate at any price related issues," he said.
GVK currently holds about 37% in MIAL while Bidvest holds about 27%. The Airports Authority of India owns 26% of the company and Airport Company South Africa 10%.
"We are interested in taking our stake to 51% in MIAL," George said. With the acquisition of 13.5% from Bidvest, the total holding of GVK in MIAL would go up to 50.5%.
Though Bidvest holds about 27% in the company and is looking at an exit option, the South African company is under an obligation to hold a minimum of 10% equity for seven years. Beyond this, the company is free to sell its stake to any financial investor though the first right of refusal is with the GVK group.
14/11/09 K V Ramana/Daily News & Analysis

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Categories: Airports Nov 2009