GVK to raise Rs 7,614 crore to retire debt of its holding companies

NEW DELHI: 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.nnGVKAHL is the holding company of Mumbai International Airport Limited (MIAL) andengaged in the business of developing, operating and managing the Chhatrapati ShivajiMaharaj International Airport, Mumbai and development of Navi Mumbai InternationalAirport.nnA 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.nnThe GVK Group had earlier said it was determined to acquire the 13.5 per cent in Mumbai International Airport Limited owned by South African firm Bid Services Division Mauritius or Bidvest.nnOther shareholders are ACSA Global (Airports Company of South Africa) which owns 10 per cent, Airports Authority of India (26 per cent) and GVK Airport Holdings, which is the majority owner with a 50.5 per cent ownership in the company that runs the country’s second busiest airport.nnGVK has already announced its intention to acquire ASCA Global’s 10 per cent stake.nnAdani Group and GVK engaged in a legal tussle over the acquisition of Bidvests stake.nnG V K Reddy, Founder and Chairman, GVK, said, “We are delighted to welcome ADIA, PSP Investments and NIIF as shareholders in GVKAHL.nnTogether, 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.nnWe will now accelerate our efforts for developing the Navi Mumbai International Airport, monetizing MIAL’s real estate assets and building an even stronger airports business.nnThis transaction validates the Government of India’s efforts to attract global investors into the country.”nnAs per the terms of the proposed transaction, upon completion, GVKAHL will have fourshareholders GVK Airports Developers Limited , ADIA, PSP Investments and NIIF.nnG V K Reddy will continue as Executive Chairman and G V Sanjay Reddy as ManagingDirector in both MIAL and NMIAL.nnUpon completion of the Transaction, GVKADL will hold 20.9 per cent in GVKAHL and the balance will be equally shared between the Investors.nnSource: Press tRUST OF iNDIA