Indian conglomerate GVK Power & Infrastructure has announced that its subsidiaries, GVK Airport Developers and GVK Airport Holdings, have signed an exclusivity agreement with the Abu Dhabi Investment Authority (ADIA) and India’s National Investment & Infrastructure Fund (NIIF) for an investment in new shares in GVK Airport Holdings equating to a 49% stake.
GVK had initiated a process to identify and select preferred investors to raise capital to reduce or refinance debt obligations of up to Rs 5,750 crore (US$864m). Citigroup Global Markets India is acting as the exclusive financial advisor to GVK for the transaction. ADIA and NIIF were selected as the preferred partners by GVK following the selection process. All proceeds from the proposed transaction will be used by GVK toward retiring debt obligations.
Dr 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 endeavors 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 monetizing Mumbai Airport’s real estate and building a strong airports business at GVK.”
The transaction is subject to due diligence by ADIA and NIIF, as well as regulatory/third party approvals and lender consents.