GMR Infrastructure plans holding co for airport business

Bangalore: GMR Infrastructure, the Bangalore-based power and infrastructure major, plans to set up a separate holding company for its airport business in order to make fund raising easier, a senior official said.
“The company is yet to incorporate and we do have plans to set up a separate holding company which will consolidate our airport business,” said a senior official from GMR Infrastructure, requesting anonymity
A separate company, which will hold all GMR airport projects, will make it easier for the firm to raise money and list the business, if it so wants, at a later stage. GMR now owns the Hyderabad and Delhi airports and is also bidding for overseas airport construction contracts. “This will allow the company to be focused and secure fund from financial institutions as they look for specific business plan. This will also help GMR to reach a critical mass and valuation,” said Amber Dubey, director, aerospace and defence, KPMG India.
The GMR group which won the bid to build, operate, modernise and expand the Male International Airport (MIA) from the Maldives government plans to leverage on its experience and focus on international opportunities, especially in South East Asia.
26/06/10 Sobia Khan/Economic Times

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Categories: Airports Jun 2010, New Jun 2010