Companies

GVK Airport to hike stake in MIAL to 50.5 per cent

PTI Mumbai | Updated on March 02, 2011

GVK Airport Holdings Private Ltd (GAHPL) has said that it has signed a share purchase agreement with Bid Services Division (Mauritius) Ltd (BSDM) to buy an additional 13.5 per cent stake in Mumbai International Airport Pvt Ltd (MIAL).

GAHPL is a step-down subsidiary of GVK Power & Infrastructure Ltd. As a result, the equity shareholding of GVK in MIAL will increase to 50.5 per cent from 37 per cent at present through the acquisition of 10,80,00,000 equity shares, a press release issued here stated.

This agreement is subject to regulatory and other approvals.

MIAL is a public-private partnership joint venture between GVK, BSDM, ACSA Global and Airports Authority of India. The company was awarded the mandate for operating and modernising the Chhatrapati Shivaji International Airport, Mumbai, in April 2006.

Upon completion of this transaction, GVK will lead the consortium with a stake of 50.5 per cent, BSDM’s stake will be reduced to 13.5 per cent, ACSA Global will hold 10 per cent and AAI the remaining 26 per cent in MIAL.

The GVK Power & Infrastructure Chairman, Mr G.V. Krishna Reddy, said: “The Chhatrapati Shivaji International Airport, Mumbai, is GVK’s first and flagship airport project in India. As a part of our overall stated objective of consolidating our presence in the airports sector in India, we have taken this significant step of increasing our shareholding in MIAL.”

“This signifies our commitment to the airports sector and further reinforces our vision of transforming CSIA into a world-class airport,” he added.

GVK, which operates two key airports in India — Chhatrapati Shivaji International Airport in Mumbai and the Bengaluru International Airport — has emerged as India’s largest airport operator in the private sector. The two airports together handled passenger traffic of 40 million in 2010.

Since taking over the airport operations in 2006, MIAL has brought about a number of changes at Chhatrapati Shivaji International Airport with an ongoing focus on passenger convenience and comfort in the long-term.

MIAL is currently implementing a master plan which includes building a new integrated passenger terminal at Sahar with latest infrastructure and facilities to cater to passenger traffic of 40 million per annum, the release said.

Published on March 02, 2011

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