GVK Airport Holdings acquires 50.5% stake in MIAL

GVK Airport Holdings (GVKAHPL), a subsidiary of GVK Power and Infrastructure (GVKPIL), today said it has acquired a 13.55% stake in Mumbai International Airport (MIAL) for a consideration of USD 231 million from Bid Services Division (Mauritius).

With this acquisition, equity share-holding of GVK in MIAL has increased to 50.5% from the current 37%, the company said in a statement issued.

The company has acquired 10,80,00,000 equity shares of Rs 10 each and with this MIAL has now become a subsidiary of GVK Airport Holdings.

With this acquisition, GVKPIL would now have an effective stake of 50.50% in MIAL, the release added.

"The Chhatrapati Shivaji International Airport is our first and flagship airport project in India. With the completion of this acquisition process, GVK will have a majority control in one of India's largest and prestigious infrastructure projects. It also underscores our long term commitment and strategic interest in the airport sector in India," GVKPIL Chairman G V Krishna Reddy said.

MIAL was awarded the mandate for operating and modernising the Chhatrapati Shivaji International Airport, Mumbai (CSIA) in April 2006. GVK operates two key airports - the CSIA and Bengaluru International Airport in Bengaluru.

The two airports, together account for passenger traffic of about 43 million for financial year FY12, the release added. PTI PSK AP NSK