Singapore's Changi Airports to buy 26% in GVK Airports biz for Rs 2,200 crore

Mumbai: Singapore's Changi Airports is likely to buy a 26% stake in GVK's airports business, forming a crucial partnership just before bids are to be called for building a spanking new airport to cater to Mumbai's booming traffic.
People close to the deal said Changi Airports International, a wholly owned subsidiary of Changi Airport Group, is likely to pay GVK Airport Holdings Private Limited Rs 2,000-2,200 crore for the 26% stake, valuing the Hyderabad-based company's airport assets at 8,000 crore. The valuation and the deal size are much bigger than GVK's current market cap of Rs 1,738.70 crore, which, in turn, is a reflection of the tough times being faced by infrastructure companies such as GVK on the bourses.
"The deal is in the final stages and an announcement is likely to be made in January," a person familiar with the situation told ET. Sanjay Reddy, the GVK group's vice-chairman, said he would not like to comment on market speculation. A spokesperson for Changi Airport declined comment to an ET questionnaire some time ago.
26/12/11 Manisha Singhal/Economic Times

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Categories: airports Dec 2011, Foreign Dec 2011, New Dec 2011