Deals

GVK linked to $600m stake sales

Indian airport operator GVK Power and Infrastructure is understood to be in talks with several private equity investors to raise up to $600m for its airport and energy businesses. The company is believed to be offering a sale of up to 30% in its airport business to private investors.

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Indian infrastructure investor GVK Power and Infrastructure is understood to be in talks to raise up to $600 million in private equity funding for two of its businesses, according to media reports.

A source close to the company told Infrastructure Investor that the company is looking to offer a stake of up to 30 percent in its airport business.
 
Media reports suggest that investment arms owned by banks Standard Chartered and Morgan Stanley as well as private equity firm TPG Capital are understood to be in talks with GVK to invest between $250 million and $300 million for a stake of up to 30 percent stake in GVK’s airport business.
 
Officials at GVK were not available for comment.
 
A media report also suggested GVK had secured an “in-principle” agreement to raise up to $280 million by selling stakes in its energy business to UK infrastructure and private equity investors 3i Group and Actis. Both of these firms declined to comment. 
 
GVK, which already operates airports in Mumbai and Bangalore, plans to bid for a proposed international airport in New Mumbai and will also seek opportunities overseas, media reports say.
 
GVK has invested more than INR50 billion in infrastructure projects across India’s power, airport and road sectors. It also has interests in the country’s hotel, services and manufacturing sectors.