Friday, April 19, 2019

Tussle for Mumbai Airport: GVK to sell 49% stake in airport arm to keep Adani out of MIAL

Hyderabad-based power and infrastructure company GVK Power & Infrastructure, which operates the Mumbai International Airport Ltd (MIAL), has offered to sell 49 per cent stake in its airport arm GVK Airport Holdings to sovereign wealth funds Abu Dhabi Investment Authority (ADIA) and the National Investment & Infrastructure Fund (NIIF). The company, did not disclose the value of the deal, but maintained that it will raise capital to refinance debt obligations of up to Rs 5,750 crore.

The stake sale is being seen as a strategy to stave off overtures from Gautam Adani, who had expressed interest to buy the flagship Mumbai airport. In January, Gautam Adani-led Adani Group had reportedly proposed to buy 23.5 per cent stake of two South African firms Bidvest and Airports Company South Africa (ACSA) in the MIAL, according to a report on The Economic Times.

As on December 31, 2018, GVK Group held 50.5 per cent stake in MIAL, while South Africa's Bidvest Group and ACSA owned 13.5 per cent and 10 per cent, respectively. The Airports Authority of India (AAI) owned the remaining 26 per cent.

In February this year, GVKAHL had acquired 10 per cent stake from ACSA along with the earlier acquisition of 13.5 per cent from Bidvest, increasing the equity shareholding of the GVK Group to 74 per cent from the existing 50.5 per cent of the total paid-up share capital of MIAL.
19/04/19 Business Today

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