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GVK Group, is in talks with at least four companies to sell a significant minority of its stake in Mumbai International Airport Pvt. Ltd, the company that operates the Chhatrapati Shivaji Maharaj International Airport, according to a report by Mint.
The report suggests that the development comes as GVK is looking to free up cash for its upcoming projects, especially the construction of the Navi Mumbai airport, at a cost of approximately Rs 14,000 crore.
Moneycontrol could not independently verify the story.
GVK Group has been discussing a stake sale with four potential bidders, including Singapore’s Changi Airport, German airport operator AviAlliance, India’s sovereign wealth fund National Investment and Infrastructure Fund (NIIF) and the Abu Dhabi Investment Authority (ADIA).
The report cities a person close to the development as saying that the bidders have been given data room access. The offers will have to be made by September 10, an internal deadline set by Citigroup, which is managing the transactions.
GVK Power & Infrastructure, which runs the airport business, is looking towards the recovery of Rs 4,000 crore to Rs 6,000 crore from the transaction. The company had a debt of Rs 12,854 crore at the end of March, the report suggests.
GVK will continue retain a stake in Mumbai airport. GVK Power & Infrastructure runs the airport business through GVK Airports Holdings Pvt Ltd, the report adds.
A AviAlliance spokesperson told the newspaper that it is always on the lookout in the global market for new airport projects but refused to confirm getting involved in any project.
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