GVK Airports signs agreements with ADIA, others for raising Rs 7,614 cr

On Sunday, GVK airports has signed the definitive agreements with three investors - ADIA, Abu Dhabi; PSP Investments, Canada and the NIIF, India for an aggregate investment of worth Rs 7614 crore (US$ 1.09 billion).

Proceeds from this transaction will be used by GVK to primarily retire debt obligations of its holding companies significantly and fund the purchase of additional shares in MIAL, from our partners - Bidvest and ACSA.

GVK will continue to manage both the airports and they will also be branded as GVK Airports.

The diversified Hyderabad-based company has been working towards paring its debt and the deal paves for the smoother transition as it takes up the development of Navi Mumbai airport.

In Bangalore International Airport Limited, GVK group has already sold its stake to Prem Watsa led Fairfax Holdings to bring down its mounting debt obligations.

GVK Reddy, Chairman of GVK group said, "We are delighted to welcome ADIA, PSP Investments and NIIF as shareholders in GVKAHL. Together, we will continue with our endeavours to create world-class infrastructure and a strong aviation hub that will provide the impetus for growth and development of Mumbai and India. We will now accelerate our efforts for developing the Navi Mumbai International Airport, monetizing MIAL's real estate assets and building an even stronger airports business. 
This transaction validates the Government of India’s efforts to attract global investors".

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

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.