New Delhi: The GVK group said it has raised more than Rs 7,600 crore from investors and the proceeds will be used to reduce debt and acquire a 23.5% stake in Mumbai International Airport (MIAL). This should halt the Adani Group’s bid to acquire a stake in the company that operates Mumbai airport.
“GVK Power & Infrastructure’s subsidiaries, GVK Airport Developers (GVKADL) and GVK Airport Holdings (GVKAHL) have entered into definitive agreements with subsidiaries of the Abu Dhabi Investment Authority (ADIA), Public Sector Pension Investment Board (PSP Investments) supported by its global airports platform, AviAlliance, and with National Investment & Infrastructure Fund (NIIF),” said a release from the company. They “will make an aggregate investment of Rs 7,614 crore, into GVKAHL”.
Upon completion of the transaction, GVK Airport Holdings will have four shareholders—GVK Airport Developers, ADIA, PSP Investments and NIIF—and the GVK Group will hold 20.9% of GVKAHL. The deal values GVK’s airport assets, which include Mumbai airport and the upcoming Navi Mumbai airport, at Rs 9,608 crore.
GVKAHL is the holding company of MIAL, which runs the Mumbai airport and has won the bid to develop Navi Mumbai International Airport (NMIA) through MIAL’s 74% subsidiary Navi Mumbai International Airport (Private) (NMIAL).
“Proceeds from the transaction will be used by GVK to primarily retire debt obligations of its holding companies significantly and fund the purchase of additional shares in MIAL by GVKAHL from Bidvest and ACSA in accordance with the right of first offer already exercised by GVKAHL,” the release added.
“The amount for payment to Bidvest will be deposited in an escrow account before the end of October as advised by the arbitration tribunal,” said a spokesperson for the company.
28/10/19 Economic Times
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“GVK Power & Infrastructure’s subsidiaries, GVK Airport Developers (GVKADL) and GVK Airport Holdings (GVKAHL) have entered into definitive agreements with subsidiaries of the Abu Dhabi Investment Authority (ADIA), Public Sector Pension Investment Board (PSP Investments) supported by its global airports platform, AviAlliance, and with National Investment & Infrastructure Fund (NIIF),” said a release from the company. They “will make an aggregate investment of Rs 7,614 crore, into GVKAHL”.
Upon completion of the transaction, GVK Airport Holdings will have four shareholders—GVK Airport Developers, ADIA, PSP Investments and NIIF—and the GVK Group will hold 20.9% of GVKAHL. The deal values GVK’s airport assets, which include Mumbai airport and the upcoming Navi Mumbai airport, at Rs 9,608 crore.
GVKAHL is the holding company of MIAL, which runs the Mumbai airport and has won the bid to develop Navi Mumbai International Airport (NMIA) through MIAL’s 74% subsidiary Navi Mumbai International Airport (Private) (NMIAL).
“Proceeds from the transaction will be used by GVK to primarily retire debt obligations of its holding companies significantly and fund the purchase of additional shares in MIAL by GVKAHL from Bidvest and ACSA in accordance with the right of first offer already exercised by GVKAHL,” the release added.
“The amount for payment to Bidvest will be deposited in an escrow account before the end of October as advised by the arbitration tribunal,” said a spokesperson for the company.
28/10/19 Economic Times
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