Hyderabad: GVK Group companies have entered into definitive agreements with subsidiaries of the Abu Dhabi Investment Authority, Canada's Public Sector Pension Investment
Board and National Investment and Infrastructure Fund to raise Rs 7,614 crore investments into GVK Airport Holdings Limited.
GVKAHL is the holding company of Mumbai International Airport Limited (MIAL) and engaged in the business of developing, operating and managing the Chhatrapati Shivaji Maharaj International Airport, Mumbai and development of Navi Mumbai International Airport.
A GVK press release said proceeds from the transaction would be used to primarily retire debt obligations of its holding companies significantly and fund the purchase of additional shares in MIAL by GVKAHL, from Bidvest and ACSA in accordance with the Right of First Offer already exercised by GVKAHL.
The GVK Group had earlier said it was determined to acquire the 13.5 percent in Mumbai International Airport Limited owned by South African firm Bid Services Division Mauritius or Bidvest.
Other shareholders are ACSA Global (Airports Company of South Africa) which owns 10 percent, Airports Authority of India (26 percent) and GVK Airport Holdings, which is the majority owner with a 50.5 percent ownership in the company that runs the country's second busiest airport.
GVK has already announced its intention to acquire ASCA Global's 10 percent stake.
Adani Group and GVK engaged in a legal tussle over the acquisition of Bidvests stake.
GVK Reddy, Founder and Chairman, GVK, said, "We are delighted to welcome ADIA, PSP Investments and NIIF as shareholders in GVKAHL. Together, we will continue with our endeavors to create world-class infrastructure and a strong aviation hub that will provide the impetus for growth and development of Mumbai and India. We will now accelerate our efforts for developing the Navi Mumbai International Airport, monetising MIAL's real estate assets and building an even stronger airport business. This transaction validates the Government of India's efforts to attract global investors into the country."
As per the terms of the proposed transaction, upon completion, GVKAHL will have four shareholders GVK Airports Developers Limited, ADIA, PSP Investments and NIIF.
GVK Reddy will continue as Executive Chairman and GV Sanjay Reddy as Managing Director in both MIAL and NMIAL.
Upon completion of the Transaction, GVKADL will hold 20.9 percent in GVKAHL and the balance will be equally shared between the Investors.
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Updated Date: Oct 28, 2019 08:56:39 IST