GVK Power & Infrastructure's subsidiaries GVK Airport Developers (GVKADL) and GVK Airport Holdings (GVKAHL) entered into definitive agreements with subsidiaries of ADIA, PSP Investments of Canada and NIIF, India.
GVKAHL, the holding company of Mumbai International Airport Limited (MIAL), is engaged in developing, operating and managing the Chhatrapati Shivaji Maharaj International Airport, and development of Navi Mumbai International Airport through MIAL's subsidiary Navi Mumbai International Airport (Private) Limited.
The fund will be used by GVK to primarily retire debt obligations of its holding companies and finance purchase of additional shares in MIAL by GVKAHL, from Bidvest and ACSA in accordance with the right of first offer exercised by GVKAHL, according to a statement from GVK here on Sunday.
With this transaction, MIAL and NMIAL will also benefit from the backing of global infrastructure investors as both airports are set to enter the next growth phase that would lead to unlocking of significant value through real estate development in MIAL and development of NMIA.
As per the terms of agreements, upon completion, GVKAHL will have four shareholders GVKADL, ADIA, PSP Investments and NIIF. Upon completion of the transaction, GVKADL will hold 20.9 per cent in GVKAHL and the rest will be equally shared by investors.
"Together, we will continue with our endeavours to create world-class infrastructure and a strong aviation hub that will provide impetus for growth and development of Mumbai and India. We will accelerate our efforts for developing the Navi Mumbai International Airport, monetising MIAL's real estate assets and building an even stronger airports business"," said GVK Reddy.
( With inputs from IANS )