Fraport can’t sell its stake in airport: DIAL

GMR Group company Delhi International Airport Pvt. Ltd (DIAL) has denied media reports that Germany's Fraport AG is looking to sell off its 10-per cent stake in the airport developer and operatot; saying in effect that Fraport does not have the right to sell its stake under the terms of the agreement.

Last week, Fraport vice-president for global investments Kai Zobel said, ''We expect the process of selling our 10 per cent holdings in the Delhi airport to be done by next June.'' He cited a poor regulatory environment and the way the government handled the infrastructure sector as reasons for exiting the venture.

Today, however, a DIAL spokesperson said, ''DIAL has noted recent items in the media which quote senior officials of Fraport AG stating the company will be divesting its equity in DIAL.  It is a matter of record that Fraport has been a shareholder holding 10 per cent equity in DIAL since inception and that the GMR Group has a right of first refusal on equity of Fraport.

''Under terms of OMDA (operation, management and development agreement), any request for transfer of equity by Fraport can be considered after seven years, ie after May 2013. Hence at this stage, the GMR Group is not engaged in any discussion or negotiation with Fraport on this matter."

DIAL is controlled by the GMR Group, which has a 54 per cent stake in the airport. Other shareholders are the Airports Authority of India (26 per cent), Fraport (10 per cent) and Eraman Malaysia (10 per cent).