Three global firms have agreed to invest Rs 7,614 crore in GVK Power & Infrastructure Ltd.'s airport business as the company looks to retire debt.
Abu Dhabi Investment Authority, Public Sector Pension Investment Board and National Investment & Infrastructure Fund, in binding agreements, will invest in GVK Airport Holdings Ltd.—the operator of Mumbai International Airport Ltd.—GVK Power said in a statement today.
Proceeds from the transaction will be used to primarily retire debt obligations of GVK's holding companies significantly, the filing said. It will be also used to buy additional stake in MIAL from South Africa's Bidvest Group and ACSA Group in accordance with the “right of first offer” agreement.
An arbitration court had earlier granted GVK Group time till Oct. 31 to deposit the purchase price of Bidvest's shares, failing which Bidvest would be free to sell its shares to any third party after securing necessary regulatory permission.
The current shareholders of Mumbai International Airport are:
- Bidvest Group: 13.5 percent.
- Airports Co. South Africa Global: 10 percent.
- Airports Authority of India: 26 percent.
- GVK Airport Holdings: 50.5 percent.
GVK, which is trying to increase its stake to 74 percent, had offered in March to buy a 10 percent stake held by a unit of ACSA Global. GVK Airport Holdings will have four shareholders—GVK Airport Developers Ltd., ADIA, PSP Investments and NIIF upon completion of the proposed deal.
The exact shareholding has not been disclosed. The deal is subject to regulatory, third party approvals and lender consents.
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