Hyderabad-based energy and infrastructure firm GVK Energy & Infrastructure, which operates the Mumbai Worldwide Airport Ltd (MIAL), has provided to promote 49 per cent stake in its airport arm GVK Airport Holdings to sovereign wealth funds Abu Dhabi Funding Authority (ADIA) and the Nationwide Funding & Infrastructure Fund (NIIF). The corporate, didn’t disclose the worth of the deal, however maintained that it’s going to elevate capital to refinance debt obligations of as much as Rs 5,750 crore.
The stake sale is being seen as a method to stave off overtures from Gautam Adani, who had expressed curiosity to purchase the flagship Mumbai airport. In January, Gautam Adani-led Adani Group had reportedly proposed to purchase 23.5 per cent stake of two South African companies Bidvest and Airports Firm South Africa (ACSA) within the MIAL, in line with a report on The Financial Occasions.
As on December 31, 2018, GVK Group held 50.5 per cent stake in MIAL, whereas 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 yr, GVKAHL had acquired 10 per cent stake from ACSA together with the sooner acquisition of 13.5 per cent from Bidvest, growing the fairness shareholding of the GVK Group to 74 per cent from the present 50.5 per cent of the entire paid-up share capital of MIAL.
GVK manages and operates the Chhatrapati Shivaji Mumbai Worldwide Airport Restricted (MIAL) and has additionally received the mandate to construct and function India’s largest Greenfield airport at Navi Mumbai.
“GVK Energy & Infrastructure introduced that its subsidiaries, GVK Airport Builders (GVKADL) and GVK Airport Holdings (GVKAHL), have signed a time period sheet and exclusivity settlement with the ADIA and the NIIF for an funding in new shares in GVKAHL equating to a 49% stake,” the corporate stated in a submitting to the Bombay Inventory Alternate.
GVK Energy stated the transaction was topic to conclusion of confirmatory due diligence by ADIA and NIIF, settlement on definitive paperwork and satisfaction of customary closing circumstances, together with regulatory and third get together approvals and lender consents.
Citigroup World Markets India Personal Restricted was performing because the unique monetary advisor to GVK for the transaction.
ADIA and NIIF have been chosen as the popular companions by GVK.
The corporate intends to make use of all proceeds from the proposed transaction in direction of retiring debt obligations.
Commenting on the event, GVK founder and chairman GVK Reddy stated, “We’re delighted to signal these agreements with ADIA and NIIF. The funds introduced in by means of this proposed transaction will assist us deleverage as we proceed with our endeavours to create the infrastructure for a robust aviation hub in India that may present the impetus for development and improvement for the complete nation. Our future focus might be on delivering Navi Mumbai Internationa Airport, efficiently monetising Mumbai airport’s actual property and constructing a robust airports enterprise at GVK.”
Edited by Chitranjan Kumar
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