GVK group to conclude stake sale in coal business in 3-4 months

The Hyderabad based company is saddled with high debt due to a series of acquisitions both in India and abroad

Infrastructure major GVK group is in talks with investors to sell minority stakes in its airport division and its Australian coal mining business.

Owing to a series of acquisitions, the Hyderabad-based company is saddled with high debt. In September 2011, GVK had acquired Australia’s Hancock Coal for $1.26 billion, securing control of the firm’s mining business, railway line and port infrastructure project. Last week, GVK had sold a 51 per cent stake in its infrastructure and port division. It is also in talks to sell a 49 per cent stake in the mining business.

GVK Vice-Chairman Sanjay Reddy said discussions on the stake sale were underway. He hoped the mining business deal would be finalised in three to four months.

The group has revived talks to sell a stake in its airport holding company. GVK controls the Mumbai and Bangalore Airports and is looking for strategic or financial investors in its airport business to repay debt of about Rs 2,000 crore. Earlier, it had held talks with Singapore’s Changi airport in this regard, but the talks didn’t materialise. “We cannot say it was due to regulatory flip-flop. The general investor sentiment had dived. We are looking at investors, both strategic and financial,” Reddy said.