Friday, August 16, 2019

GVK Power completes term sheet with strategic investor for its airport arm

Hyderabad: GVK Power & Infrastructure Ltd has signed a term sheet with a strategic investor for GVK Airport Holdings Ltd, its subsidiary, but is awaiting various mandatory clearances and lenders’ approvals to conclude the deal.

The diversified infrastructure company is in discussions has not yet reached a definitive stage about the terms and conditions that would entail the firm purchase contract.

The step-down airport subsidiary and holding company of Mumbai International Airport Ltd holds 50.5 per cent equity and the management has been looking for divestment options in the vertical.

Before the conclusion of this deal, GVK may further hike its stake in the SPV, buying out the interest of other partners.
It recently secured approval from the Competition Commission of India (CCI) to hike its stake, possibly to 74 per cent.

During the divestment process, the management obtained bids for diluting the shareholding in the airport vertical, started discussions with one of the bidders and inked a term sheet.

The subsidiary has bagged the prestigious Navi Mumbai Airport project mandate, expected to see total investment outlay in excess of ?16,000 crore.
16/08/19 V Rishi Kumar/Business Line

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