GVK to raise stake in Mumbai airport to 50.5 per cent
02 Mar 2011
GVK Power and Infrastructure Ltd, has agreed to acquire an additional 13.5 per cent equity in airport company Mumbai International Airport Ltd (MIAL) that runs Chhatrapati Shivaji International Airport in Mumbai, to raise its stake to 50.5 per cent from the current 37 per cent.
GVK Airport Holdings Private Limited said it has signed a share-purchase agreement with Bid Services Division (Mauritius) Ltd (BSDM), one of its Mauritius-based consortium partners, for the acquisition of additional 13.5 per cent stake in MIAL, for $230-million.
Mial is a joint venture of GVK, BSDM, ACSA Global of South Africa and state-run Airports Authority of India (AAI).
Post acquisition of the additional stake, consisting of 10,80,00,000 equity shares, GVK would lead the consortium with 50.5 per cent holding while Bid Services Division (Mauritius) would hold 13.5 per cent in MIAL.
According to the company, the stakes of ACSA Global and AAI would remain at 10 per cent and 26 per cent, respectively.
"The Chhatrapati Shivaji International Airport is GVK's first and flagship airport project in India. As a part of our overall stated objective of consolidating our presence in the airports sector in India, we have taken this significant step of increasing our shareholding in MIAL," G V Krishna Reddy, chairman of GVK Power & Infrastructure Limited, said.
MIAL has undertaken implementation of a master plan, which includes building a new integrated passenger terminal at Sahar. The state-of-the-art terminal would have infrastructure and facilities to cater to passenger traffic of 40-million per annum, according to the company's release.
