Gvk to sell stake in airport business

GVK Power & Infra (GVKPIL) is in talks with PE players to dilute stake in its airport subsidiary. GVK Airport Development Private Ltd which is the holding company for all GVK investments in the aviation space is looking at diluting up to 26% stake. GVK Airport development private limited is a hundred per cent subsidiary of GVK Power & Infra. ( Watch )
According sources from the company, GVKPIL is in talks with Temasek holdings, Blackstone group & SBI-Macquarie. ‘The company is looking at raising up to $400 mn through the stake sale’ said a company source who did not want to be named. The deal is expected to be finalised by September.
GVK Power and Infrastructure holds about 37 per cent in Mumbai International Airport Ltd (MIAL) and around 29 per cent in Bangalore International Airport Ltd (BIAL). It is in talks with its South African partner Bidvest to buy 13.5% stake which will take hike its stake to 51% in MIAL.
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.
The Airports Authority of India owns 26% of the company and Airport Company South Africa 10% in MIAL.
20/07/10 Sameer Hashmi/Economic Times

To Read the News in full at Source, Click the Headline

Categories: Airports Jul 2010