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GVK Group to raise 7,614 crore to retire debt

The GVK Group is currently locked in a legal battle with the Adani Group on stake sale in its flagship Mumbai International Airport Limited. (Abhijit Bhatlekar/Mint)Premium
The GVK Group is currently locked in a legal battle with the Adani Group on stake sale in its flagship Mumbai International Airport Limited. (Abhijit Bhatlekar/Mint)

  • The GVK Group is currently locked in a legal battle with the Adani Group on stake sale in its flagship Mumbai International Airport Limited
  • MIAL is a joint venture between GVK-led consortium of Bidvest and Airports Company of South Africa, and the state-run Airports Authority of India

NEW DELHI : The airport arms of GVK Power and Infrastructure Lmited (GVK Group) has signed agreements to raise an investment of 7,614 from Abu Dhabi Investment Authority (ADIA), Canada's Public Sector Pension Investment Board, (PSP Investments), and the government-backed National Investment & Infrastructure Fund (NIIF), the company said in a statement on Sunday.

The proceeds from the investment will be used to retire debt debt obligations of its holding companies and fund the purchase of additional shares in MIAL (Mumbai International Airport Limited) from partners Bidvest and ACSA, the company said in a statement.

"GVK Airport Developers Limited (GVKADL) and GVK Airport Holdings Limited (GVKAHL) have entered into definitive agreements with subsidiaries of the Abu Dhabi Investment Authority (ADIA), Public Sector Pension Investment Board (PSP Investments) supported by its global airports platform, AviAlliance, and with National Investment & Infrastructure Fund (NIIF), whereby the Investors will make an aggregate investment of 7,614 crore, into GVKAHL," the company said in the statement.

Post the investment, GVKADL will hold 20.9% in GVKAHL and the balance will be equally shared between the Investors, the company said.

GVK Reddy will continue as executive chairman of airport companies like MIAL and Navi Mumbai International Airports Limited (NMIAL), while GV Sanjay Reddy will remains as managing director in both MIAL and NMIAL, the company added.

The GVK Group is currently locked in a legal battle with the Adani Group on stake sale in its flagship Mumbai International Airport Limited (MIAL) that country's second busiest airport.

The Hyderabad-based conglomerate is resisting the Adani Group's bid to buy out the 13.5% stake being held by its South African joint venture partner Bidvest in MIAL. The issue is with the Bombay High Court.

MIAL is a joint venture between GVK-led consortium of Bidvest and Airports Company of South Africa, and the state-run Airports Authority of India (AAI), in which GVK holds majority 50.5% and AAI 26% and the remaining 23.5% are with the two foreign partners.

While Bid Services Division Mauritius or Bidvest owns 13.5%, ACSA Global (Airports Company of South Africa) holds 10% in the nation's second busiest airport.

Apart from MIAL, the GVK Group is also developing the Navi Mumbai International Airport (NMIA) located at the

Ulwe Kopar-Panvel region of Maharashtra, on the outskirts of Mumbai city.

"With this transaction, MIAL and NMIAL will also benefit from the backing of global infrastructure investors as both airports embark on the next growth phase that would lead to unlocking significant value through real estate development in MIAL and the development of the NMIA," GVK Group added in the statement.

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