Boarding call for investors

GVK Group is in talks with four potential bidders to sell a stake in Mumbai airport

South Africa’s Bidvest Group, which owns around 13.5% in the airport, has begun a parallel process to sell its entire stake

Avialliance and National Investment and Infrastructure Fund, besides Singapore’s Changi Airport and Abu Dhabi Investment Authority, are interested in buying a stake

GVK Group is looking to raise between ₹4,000 crore and ₹6,000 crore GVK owns 50.5% in Mumbai International Airport

Private Limited crore at the end of March. “The group is looking to raise anywhere between ₹4,000 crore to ₹6,000 crore from the transaction and will continue to retain a stake in MIAL post the deal,” the first person cited before said. “The transaction value will depend on the overall valuation of MIAL, which is expected to be around ₹16,000 crore or more.”

The second person cited before said “all the four bidders have been given data room access by GVK so that they can finalize their respective bids”.

MIAL runs the Chhatrapati Shivaji International Airport— one of the busiest in India—as a special purpose joint venture company. A consortium led by GVK holds a 74% stake in Mumbai airport. GVK owns a 50.5% stake, while the Bidvest Group, and Airports Co. South Africa Ltd hold 13.5% and 10%, respectively. The remaining 26% is held by state-run Airports Authority of India (AAI).

Under a 30-year concession, the government granted MIAL the right to operate, maintain and develop Chhatrapati Shivaji International Airport. The airport services the Mumbai metropolitan area. In, 2010, GVK acquired a 13.5% stake from Bidvest paying around ₹650 crore. State-run AAI has the right to buy stakes in MIAL, according to previously agreed terms, before it’s sold to a third party. Responding to a query from

a spokesperson for Bidvest Group confirmed the development and said the group was looking to exit its investment in MIAL.