GVK clarifies on sale of airport business and Australian operations
GVK Power & Infrastructure has announced that it is in preliminary talks with a few investors to sell a stake in GVK Airport Holdings and Hancock Infrastructure Pvt Ltd.
The firm aims to raise funds to reduce its corporate debt.
In February 2014, we announced that a group of investors led by IDFC Private Equity was in initial talks with the company to buy a significant minority stake in its airports business for Rs 25,000 million (US$400 million). However we didn't have any additional news regarding this potential transaction.
The company reported in a statement:
The company is exploring various options for reducing some of its debt. An option that is being looked at is, raising equity at the Airport Holding Company, to retire the debt raised for the airport acquisition. The Company is in discussion with a few investors in this matter. The Company is also exploring a possibility to bring in an equity investor(s) into Hancock Infrastructure Pvt Limited, which is a holding company, for the Rail and Port Projects in Australia.
Since the discussions are at a preliminary stage, it would not be appropriate for the company to divulge any details at this stage. No sooner the deal crystallizes, we would be in a position to inform the regulatory authorities on the same.
GVK's airport holding company GVK Airport Holdings is partly owner and operator of Mumbai and Bangalore airports. The airport holding company also has two under construction airports in Indonesia.
Hancock Infrastructure Pvt Ltd is a holding company for the rail and port projects in Australia. GVK Hancock is developing the Alpha and Kevin's Corner projects in the Galilee Basin in Australia's Queensland state.
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