The GVK group on Sunday said Abu Dhabi Investment Authority, Canada’s Public Sector Pension Investment Board and the National Investment & Infrastructure Fund (NIIF) will jointly invest Rs 7,614 crore in GVK Airport Holdings Ltd (GVKAHL). GVKAHL is the holding company of Mumbai International Airport Ltd (MIAL).
The move has effectively thwarted an attempt by the Adanis to pick up the 23.05 per cent stake held by two South African companies in MIAL, which manages the Mumbai airport and is developing a new one at Navi Mumbai .
According to a press statement by the GVK group, proceeds from the transaction will be used to primarily retire debt obligations of its holding companies 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 wanted to acquire a 13.5 per cent in MIAL, owned by South African firm Bid Services Division Mauritius, or Bidvest. The other shareholders are ACSA Global (Airports Company of South Africa), which owns 10 per cent and the Airports Authority of India (26 per cent).
GVK Airport Holdings is the majority owner with a 50.5 per cent ownership in the company that runs the country’s second busiest airport.
“We are delighted to welcome ADIA, PSP Investments and NIIF as shareholders in GVKAHL. We will now accelerate our efforts for developing the Navi Mumbai International Airport, monetising MIAL’s real estate assets and building an even stronger airports business,” said GVK group founder and chairman G. Reddy.
According to the terms of the proposed transaction, upon completion, besides GVK Airports Developers, the other three shareholders in GVKAHL will be ADIA, PSP Investments and NIIF.
G. V. K Reddy will continue as executive chairman, while G. V. Sanjay Reddy will be the managing director in both MIAL and Navi Mumbai International Airport. Upon completion of the transaction, GVK Airports Developers will hold 20.9 per cent in GVKAHL and the balance will be equally shared by the investors.
PSP Investments is one of Canada’s largest pension investment managers. The Indian government’s NIIF invests in infrastructure and related sectors in the country.
