Canadian pension fund PSP Investments and Spanish infrastructure company Ferrovial are vying to pick up a 49% stake in GVK Airport Holdings Pvt. Ltd, a wholly owned unit of GVK Power and Infrastructure Ltd, a media report said.
The Times of India reported, citing people aware of the development, that GVK will use the funds from the stake sale to invest in the Navi Mumbai airport and pare debt.
GVK Airport holds 50.5% of Mumbai International Airport Ltd (MIAL), which is developing the Navi Mumbai airport. The other shareholders in the Mumbai airport operator are South Africa’s Bidvest Group (13.5%), Airports Company South Africa (10%) and Airports Authority of India (26%).
Citigroup is advising GVK on the stake sale, according to the report. GVK Airport Holdings has a debt of over Rs 8,000 crore, it added.
Last week, GVK Power had received its shareholders’ approval to raise up to Rs 8,000 crore through various options.
Ferrovial operates four airports in the United Kingdom, at Heathrow, Glasgow, Aberdeen and Southampton, according to its website.
Meanwhile, debt-laden Asian Colour Coated Ispat Ltd has received expressions of interest from Sajjan Jindal-led JSW Steel, JM Financial Asset Management, the Bain-Piramal joint venture, Apollo Global and Liberty House, The Hindu BusinessLine reported.
Asian Colour Coated Ispat is undergoing bankruptcy proceedings at the National Company Law Tribunal. It makes steel products such as cold-rolled coils and sheets, galvanised corrugated sheets and colour-coated coils and sheets. It has two plants, at Bawal in Haryana and Khopoli in Maharashtra.
The company has annual cold rolling capacity of 7.8 lakh tonnes, galvanising 6.7 lakh tonnes and colour coating 1.9 lakh tonnes.