GVK may sell stake in Indonesia airport projects: Sources

Hyderabad-based GVK Group is likely to sell its stake in Indonesia airport projects, reports CNBC-TV18, quoting sources. The private airport operator is looking to raise up to USD 500 million through the stake sale. Sources say GVK may sell part stake in two of its Indonesia airport project. In January 2011, GVK had signed Memorandum of Understanding (MoU) with the Indonesian government for developing two greenfield airports - one in Yogyakarta and another in North Bali.GVK has completed the feasibility analysis for both airports and is in the process of preparing a master plan. The company is in initial talks with projective bidders for the sale. Sources tell CNBC-TV18 that some local players have expressed interest. A consortium of private equity players is also eyeing the stake. The move is part of the company’s strategy to bring down its Rs 18,500 crore debt. The company is planning to monetise assets in the coal, power and airport businesses. It recently completed the state-of-the-art T2 terminal at the Mumbai International Airport, which is expected to fetch the company Rs 1,200-1,500 crore. Meanwhile, GVK, responding to a CNBC-TV18 query said: “As per policy, cannot comment on market speculation”.

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