Monday, August 27, 2018

Private equity firms, airport operators vying for 13.5% in MIAL

Private equity firms and airport operators have joined the race to acquire a 13.5% stake in Mumbai International Airport Ltd (MIAL) from Bidvest Service, a leading South Africa-based services, trading and distribution group, said two people familiar with the development.

The deal size is pegged at $300-350 million (Rs 2,100-2,500 crore), valuing MIAL at Rs 15,000-18,000 crore. Bidvest had sold a 13.5% stake to Indian promoter GVK for $231million in October 2011. That was equivalent to Rs 1,134 crore at the time at the prevailing exchange rate of Rs 49 per dollar.

PE firms Blackstone, TPG, Canada Pension Plan Investment Board and Brookfield along with operators Changi Airport Group and Dubai Airports are among the contenders, said one of the persons cited above. Global investment bank NM Rothschild is running the mandate. Rothschild (India) declined comment. The PE firms did not respond to queries. Airport operators could not be reached.
GVK is also trying to raise funds by selling a large minority stake of up to 49% in the airport holding company and has mandated Citi for the transaction. Approaches are said to have been made to AMP Capital, Qatar Investment Authority and Malaysia Airports Holdings Bhd. GVK Airports Holdings owns 50.5% of MIAL, the consortium that runs airport terminals in the city and has a contract to build and manage the upcoming Rs 16,000 crore airport in Navi Mumbai.
27/08/18 Economic Times