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GVK Power says no fund raising needed for Mial stake

GVK Power says no fund raising needed for Mial stake
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First Published: Thu, Mar 03 2011. 02 59 PM IST
Updated: Thu, Mar 03 2011. 02 59 PM IST
Mumbai: GVK Power & Infrastructure does not need to raise funds for buying an additional 13.5% stake in Mumbai International Airport (Mial) from Bidvest Group for $287 million, its vice chairman G. V. Sanjay Reddy said on Thursday.
The airport, roads and energy firm said on Wednesday its unit had signed an agreement with Bid Services Division (Mauritius) Ltd to buy 13.5% stake in Mial, taking its total stake in Mial to 50.5%. Bid Services is part of the Bidvest Group.
As part of the agreement, GVK will pay $287 million to Bidvest in three years, Reddy told television channel ET Now.
“Effectively, we do not need any money for 3 years, as far as the 13.5% is concerned there will be no dilution (of equity) for this purpose.”
But the operator of Mumbai and Bangalore airports is looking to divest some stake in its airports business vertical, he added.
“We are looking at a dilution of our airports business, but not for the funding of the 13.5% stake.”
In September last year, the firm’s chief financial officer had told Reuters it intends to raise funds for its airports business via private equity.
GVK shares shed early gains of over 3% and at 2:36 pm were trading flat in a choppy Mumbai stock market.
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First Published: Thu, Mar 03 2011. 02 59 PM IST