GVK to offload 79 pc stake in airport business to raise Rs 7,614 crore

Hyderabad (Telangana) [India], Oct 28 (ANI): The GVK group is offloading 79.1 per cent of equity stake in its airport business to three investors for raising Rs 7,614 crore in a bid to trim the piled up debt.
The group subsidiaries GVK Airport Developers Ltd and GVK Airport Holdings Ltd have entered into definitive agreements with subsidiaries of Abu Dhabi Investment Authority, Public Sector Pension Investment Board supported by its global airports platform AviAlliance and with National Investment and Infrastructure Fund.
The proceeds from the transaction will be used by GVK to retire about Rs 5,500 crore debt of its holding companies and fund purchase of additional shares in Mumbai International Airport Ltd (MIAL) from two South African entities -- Bidvest and Airports Company South Africa.
GVK Airport Developers is the holding company of MIAL and engaged in the business of developing, operating and managing the Chhatrapati Shivaji Maharaj International Airport and development of Navi Mumbai International Airport through MIAL's subsidiary Navi Mumbai International Airport Ltd (NMIAL)
An arbitration tribunal has given the GVK group time till October 31 to deposit Rs 1,248 crore for acquiring Bidvest's 13.5 per cent stake. The group is locked in a legal battle to prevent the Adani group's entry in Mumbai airport.
After the stake sale, the GVK group will continue to have management control of its airport business. G V K Reddy will continue as Executive Chairman and G V Sanjay Reddy as Managing Director in both MIAL and Navi Mumbai International Airport.
Both airports will continue to be branded as GVK Airports. Upon completion of the transaction, GVK Airport Developers will hold 20.9 per cent stake in GVK Airport Holdings and the balance will be equally shared between the investors.
"With this transaction, MIAL and NMIAL will also benefit from the backing of global infrastructure investors as both airports embark on the next growth phase that would lead to unlocking significant value through real estate development in MIAL and the development of the NMIA," the group said in a statement.
Group Founder and Chairman G V K Reddy said: "We will now accelerate our efforts for developing the Navi Mumbai International Airport, monetising MIAL's real estate assets and building an even stronger airports business. This transaction validates the government's efforts to attract global investors into the country."
(ANI)