GVK in talks to buy additional 13% in Mial

GVK in talks to buy additional 13% in Mial
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First Published: Thu, Oct 15 2009. 01 38 AM IST

Purchase agreement: Mumbai International Airport Ltd has a 30-year contract to operate. Madhu Kapparath / Mint
Purchase agreement: Mumbai International Airport Ltd has a 30-year contract to operate. Madhu Kapparath / Mint
Updated: Thu, Oct 15 2009. 01 38 AM IST
Already the holder of a 37% stake in Mumbai International Airport Pvt. Ltd (Mial), GVK Power and Infrastructure Ltd is in advanced negotiations with South Africa’s Bidvest Group Ltd to acquire an additional 13% stake, people close to the development said.
Bidvest holds a 27% stake in Mial; the Airport Authority of India owns 26% and Airport Company South Africa owns 10%.
Purchase agreement: Mumbai International Airport Ltd has a 30-year contract to operate. Madhu Kapparath / Mint
GVK and Bidvest are now discussing valuations, the people said on condition of anonymity, adding that Mial is valued at close to $1.7 billion (Rs7,854 crore), based on the commercial opportunities available at the airport. Mial has a 30-year contract to operate the airport, one of India’s biggest.
The people also said GVK is trying to buy the 13% stake at a discount to current valuations.
GVK had earlier told analysts that it intends to invest an additional Rs75 crore in the airport.
The company recently raised Rs700 crore by selling securities to institutional investors. It had raised Rs1,200 crore in 2008 through the same route.
GVK Power and Infrastructure’s board has also approved a proposal to raise further funds through sale of securities not exceeding Rs1,800 crore, subject to regulatory and shareholder approvals.
The firm has, however, told the Bombay Stock Exchange that it has not entered into any purchase agreement to acquire an additional stake in Mial.
cnbc18@livemint.com
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First Published: Thu, Oct 15 2009. 01 38 AM IST