GVK Infra to pay Rs 1200-1250 cr for MIAL stake

MUMBAI: Hyderabad based GVK Power & Infrastructure will pay Rs 1200 crore to Rs 1250 crore for 13.5% stake in the Mumbai International Airport Limited (MIAL). The company will buy 13.5% stake from Bid Services Division which will increase its holding in MIAL from the existing 37.5% to 51%.

‘GVKPIL will be paying around $280 mn for the stake. The valuation of the airport has gone up in the last one year.’ said a source familiar with the details. Analysts were estimating that GVKPIL would pay Rs 650 crore for the 13.5% stake. But the latest deal evaluates MIAL at $ 2 billion. The company has been in talks with PE firms to raise money in its airport subsidiary by diluting stake. Air port Authority of India (AAI) holds 26% stake in MIAL.

GVK also operates the Bangalore International Airport. It has been consolidating its investments in the airport business. At the end of 2009, it paid a total of Rs 1,170 crore to buy out its partners', Zurich Airport and Larsen and Toubro (L&T), stake in Bangalore International Airport.

The Mumbai International Airport handled 25.6 million passengers in 2009-10. The Bangalore International Airport handled passenger traffic of 11.24 million in 2010.The Delhi International Airport is the busiest airport which handled annual passenger traffic of 26.1 million for 2009-2010.