GVK sells 49% stake in airport arm

Hyderabad: GVK Power and Infrastructure Ltd on Thursday said it agreed to offer 49 per cent stake in GVK Airport Holdings Ltd in favour ofAbu Dhabi Investment Authority (ADIA) and the National Investment and Infrastructure Fund (NIIF).

In afiling with BSE, the city-based infra major said the transaction is subject to conclusion of confirmatory due diligence by ADIA and NIIF, agreement on definitive documents and satisfaction of customary closing conditions including regulatory and third-party approvals and lender consents.

"GVK Airports Developer Ltd (GVKADL) and GVK Airport Holdings Ltd (GVKAHL), subsidiaries of out company have signed a term sheet and exclusivity agreement with the Abu Dhabi Investment Authority and the National Investment and Infrastructure Fund for an investment in new shares in GVKAHL equating to a 49 percent stake," the statement said.

However, the deal value was not disclosed.GVKAHL holds 74 per cent equity stake in Mumbai International Airport Limited (MIAL).The MIAL has been awarded a Greenfield airport project at Navi Mumbai.

"GVK had initiated a process to identify and select preferred investors to raise capital to reduce debt obligations of up to Rs 5,750 crore. ADIA and NIIF were selected as the preferred partners by GVK," it's said.