Hyderabad: The GVK Group on Thursday said it is in exclusive talks with the UAE-based Abu Dhabi Investment Authority (ADIA) and India’s National Investment & Infrastructure Fund (NIIF) to sell 49 per cent stake in its airport subsidiaries, which run India’s second busiest airport in Mumbai.
“GVK Airport Develo-pers Limited and GVK Airport Holdings Ltd have signed a term sheet and exclusivity agreement with the Abu Dhabi Investment Authority (ADIA) and the National Investment & Infrastruc-ture Fund (NIIF) for an investment in new sha-res in GVKAHL equating to a 49 per cent stake,” said GVK Power & Infrastructure Ltd in a statement issued late Thursday.
The company said it had initiated a process to identify and select preferred investors to raise capital to reduce or refinance debt obligations of up to Rs 5,750 crore. “All proceeds from the proposed transaction will be used by GVK towards retiring debt obligations.”
The transaction, however, is subject to conclusion of confirmatory due diligence by ADIA and NIIF. Though the deal vale of the current transaction is not revealed, the Adani Group had valued the airport venture at about $1.3 billion (`9,500 crore).
At this valuation, the current deal — comprising Mumbai airport in India and Bali airport in Indonesia — would get over Rs 4,000 crore for the GVK group.
“The funds brought in through this proposed transaction will help us deleverage as we continue with our endeavours to create the infrastructure for a strong aviation hub in India,” said G.V.K. Reddy, chairman of GVK Group.
GVKAHL had recently increased its share in Mumbai airport operator by buying the minority shares of its partners ACSA and Bidvest to thwart the Adani Group’s attempt to own a pie in India’s second busiest airport.
The Hyderabad-based company is said to have paid Rs 2,100 crore to its two South African partners. GVKAHL currently holds 74 per cent equity stake in Mumbai airport operator....