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GVK’s Airport Holdings Firm Gets Rs 7,614 Crore Investment

GVK’s Airport Holdings Firm Gets Rs 7,614 Crore Investment

Sentinel Digital DeskBy : Sentinel Digital Desk

  |  29 Oct 2019 12:55 PM GMT

Hyderabad: Leading Indian conglomerate GVK has signed agreements with the Abu Dhabi Investment Authority (ADIA), the Public Sector Pension Investment Board (PSP Investments) and the National Investment & Infrastructure Fund (NIIF) for Rs 7,614 crore investment in its airport holdings company.

GVK Power & Infrastructure’s subsidiaries –GVK Airport Developers (GVKADL) and GVK Airport Holdings (GVKAHL) – entered into definitive agreements with subsidiaries of ADIA, PSP Investments of Canada and NIIF, India.

GVKAHL, the holding company of Mumbai International Airport Limited (MIAL), is engaged in developing, operating and managing the Chhatrapati Shivaji Maharaj International Airport, and development of Navi Mumbai International Airport through MIAL’s subsidiary Navi Mumbai International Airport (Private) Limited.

The fund will be used by GVK to primarily retire debt obligations of its holding companies and finance purchase of additional shares in MIAL by GVKAHL, from Bidvest and ACSA in accordance with the right of the first offer exercised by GVKAHL, according to a statement from GVK here on Sunday.

With this transaction, MIAL and NMIAL will also benefit from the backing of global infrastructure investors as both airports are set to enter the next growth phase that would lead to the unlocking of significant value through real estate development in MIAL and development of NMIA.

As per the terms of agreements, upon completion, GVKAHL will have four shareholders –GVKADL, ADIA, PSP Investments, and NIIF. Upon completion of the transaction, GVKADL will hold 20.9 percent in GVKAHL and the rest will be equally shared by investors. (IANS)

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