IDFC led group in talks for stake in GVK’s Airport Business
An investors’ consortium led by IDFC Private Equity is in initial talks with the GVK Group to buy a significant minority stake in its airports business for $400 million (Rs 2,500 crore). The PE firm has very recently raised $644 million for an infrastructure fund and invests in roads, power and airport developers. The deal can help the GVK group to reduce debt and utilize the money in expanding its airport capacity. In January, the Vice-Chairman of the group, Mr. Sanjay Reddy said that the group was looking to raise Rs 2,500 crore through a stake sale in a few months. The group operates the Mumbai and Bangalore airports.
A GVK senior executive confirmed on the condition of anonymity that the talks to sell a stake in the airports business are ON. Without naming the potential investor, the executive said the company was waiting for the investor to first get an approval for the deal at its next board meeting later this month.
Source: The Economic Times
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