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Last Updated : Apr 22, 2019 12:58 PM IST | Source: Moneycontrol.com

GVK Power surges 10% as co to sell 49% stake in airport arm

All proceeds from the proposed transaction will be used by GVK towards retiring debt obligations.

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Shares of GVK Power & Infrastructure surged 10 percent intraday Monday as company is going to sell 49 percent stake in its airport subsidiary.

The company in its press release said that GVK Airport Developers (GVKADL) and GVK Airport Holdings (GVKAHL), subsidiaries of our Company, have signed a term sheet and exclusivity agreement with the Abu Dhabi Investment Authority (ADIA) and the National Investment & Infrastructure Fund (NIIF) for an investment in new shares in GVKAHL equating to a 49% stake.

The transaction is subject to conclusion of confirmatory due diligence by ADIA and NIIF, agreement on definitive documents and satisfaction of customary closing conditions including regulatory/third party approvals and lender consents.

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All proceeds from the proposed transaction will be used by GVK towards retiring debt obligations.

GVK Reddy, Founder and Chairman, GVK said, "We are delighted to sign these agreements with ADIA and NIIF. The funds brought in through this proposed transaction will help us deleverage as we continue with our endeavours to create the infrastructure for a strong aviation hub in India that will provide the impetus for growth and development for the entire country."

"Our future focus will be on delivering Navi Mumbai International Airport, successfully monetising Mumbai airport’s real estate and building a strong airports business at GVK,” he added.

At 12:25 hrs GVK Power & Infrastructure was quoting at Rs 7.96, up Rs 0.64, or 8.74 percent on the BSE.

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First Published on Apr 22, 2019 12:37 pm
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