Canada’s Public Sector Pension Investment Board, or PSP Investments, and Spanish airport operator Ferrovial,
which runs Heathrow of London, among others, are the two final suitors advancing on a large share purchase in GVK Airport Holdings, people directly familiar with the matter said.
GVK owns and operates the country’s second busiest Mumbai International Airport, and will manage the proposed Navi Mumbai International Airport too. Citigroup is said to be advising the transaction, which could conclude with one of the two bidders in the next two months. Financial details of the potential transaction could not be ascertained at this stage.
Earlier this month, GVK Power & Infrastructure sought shareholder nod to sell over 50% stake in the privately held airports holding company for raising up to Rs 8,000 crore. The capital raised will be deployed to pare debt and for developing the Navi Mumbai airport. GVK Airport Holdings has over Rs 8,000-crore debt, while the group’s overall debt hang is well over Rs 20,000 crore.
One of the sources cited earlier said the share sale to one of the bidders would be up to 49%. However, GVK Airport is likely to go ahead with an IPO plan sometime next year, which would see the promoter stake fall below 50%. The company is a fully owned subsidiary of GVK Power & Infrastructure.
PSP and Ferrovial were in the final lap after the latest phase of protracted deal-making in GVK Airport had attracted several bidders, including Australian infrastructure investor AMP Capital, Abu Dhabi Investment Authority and Malaysia Airports, among others.
Source: The Times of India (Business)
The GVK group is planning to sell a minority stake in its airports holding company and has held talks with Qatar Investment Authority (QIA), AMP Capital and Global Infrastructure Partners as well as Canada Pension Plan Investment Board among other global investors.