GMR Group to consolidate airport business

Mumbai: Bangalore based GMR group is in the process of consolidating its airport business. The parent company is transferring its stake in the Delhi International Airport Limited & Hyderabad Airport to its airport subsidiary.
The GMR parent company is selling 24% stake in Delhi International Airport Limited (DIAL)for Rs 660 crore and 63% stake in the Hyderabad Airport for Rs 240 crore to the airport holding company according to two sources familiar with the development. GMR holds 54% stake in DIAL
The idea is to consolidate the airport business into one holding company, said the source. Recently GMR had raised $350 million through private equity firms through its airport business. SBI Macquarie has invested $200 million, while Standart Charted bank's private equity fund, Jacob Ballas & Old Lane are pumping in $ 150 million in a consortium.
The Rs 900 crore amount that GMR will get after this consolidation will be used for power projects.GMR Airport Holdings operates two airports in India (New Delhi and Hyderabad) and one in Turkey (the Sabiha Gokcen International Airport, Istanbul). The airport arm accounts for as much as 46 per cent of GMR Infra's revenues.
05/05/11 Sameer Hashmi/Economic Times

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

Categories: Airports May 2011