GVK Airport Holdings Limited, a step down subsidiary of GVK Power & Infrastructure Limited, has decided to acquire 13.5 per cent stake of Bidvest in Mumbai International Airport Limited, thereby hiking it's stake to 64 per cent from 50.5 per cent.
The Hyderabad based diversified infrastructure company has exercised its right, under “Right of First Refusal” in terms of the Shareholders Agreement dated April 4, 2006, as may be mutually agreed, regulatory and other approvals and also in accordance with the various contractual agreements between GVKAHL and Bid Services Division (Mauritius) Limited (Bidvest).
This results in acquisition of 16,20,00,000 equity shares of Mumbai International Airport Limited, constituting 13.5% of the total paid-up share capital of MIAL, from Bidvest at the rate of Rs.77 per share.
Upon completion, equity shareholding of the GVK Group will increase to 64% from the existing 50.5% of the total paid-up share capital of MIAL.
The acquisition comes in the backdrop of intense speculation about several other companies evincing interest to pick up stake in MIAL.
GVK's move to hike stake is result of its move to develop the Rs 15,000 crore Greenfield Navi Mumbai airport.
The company may also further hike it's stake by acquiring additional 10 per cent stake of Airports company of South Africa.
It may be recalled Bidvest had in the past issued notice to GVK stating it had found a buyer for it's stake. However, GVK has the first right of refusal which it decided to exercise.
The airport project is valued at nearly Rs 10,000 crore and this stake buy works out to about Rs 1,200 crore, sources close to the development said.