New Delhi/ Mumbai: GVK Airport Holdings Pvt Ltd, an arm of GVK Power & Infrastructure Ltd (GVKPIL), today completed the acquisition of 13.5 per cent stake of Bid Services Division (Mauritius) Ltd in Mumbai International Airport Pvt Ltd (MIAL). The company had announced its decision to purchase the stake in March.
GVK bought the stake for $231 million (Rs 1,140 crore), valuing MIAL at around Rs 8,500 crore. After the acquisition, GVK’s stake in MIAL stands at 50.5 per cent. While the Airports Authority of India owns 26 per cent, Bid Services Division (Mauritius) and the Airports Company of South Africa hold 13.5 and 10 per cent, respectively.
The acquisition is the second-biggest by the GVK group to consolidate its position in the airport business. In August, the group increased its stake in Bangalore International Airport Ltd (BIAL) to 43 per cent, by acquiring 14 per cent stake from Siemens for Rs 614 crore. The deal valued BIAL at Rs 4,300 crore.
“We have a management control in MIAL and now, we will have two additional members on the board. The acquisition is being financed with a short-term debt. We are looking for a private equity investor in the airports’ holding company and we will use those funds to repay the debt,’’ said A Issac George, chief financial officer of the group.
19/10/11 Business Standard
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