GVK unit to hold 74 pc stake in MIAL after share purchase

Diversified conglomerate GVK Group said on Friday it is increasing its stake in Mumbai International Airport Limited (MIAL) to 74 per cent from just above 50 per cent at present.

MIAL is a joint venture company held by GVK Airport Holdings ( with 50.5 per cent stake), South Africa-based Bidvest Services (13.5 per cent) and ACSA Global (10 per cent) and Airports Authority of India (26 per cent).

The company has already acquired Bidvest's 13.5 per cent stake. It is now buying 10 per cent of paid-up capital of ACSA Global, which is 12 crore equity shares at the rate of Rs 77 per share.

"Upon completion of this 10 per cent acquisition along with the earlier acquisition of 13.5 per cent stake from Bidvest, the equity shareholding of the GVK Group will increase to 74 per cent from the existing 50.5 per cent in MIAL," the company informed stock exchanges in regulatory filings.

GVK Airport Holdings is a step-down subsidiary of GVK Power and Infrastructure Ltd. It exercised its power under 'Right of First Refusal' in terms of the shareholders agreement of April 4, 2006.

Under a 30-year concession, the government has granted MIAL the right to operate, maintain, develop, design, construct, upgrade, modernise, finance and manage Chattrapati Shivaji International Airport in Mumbai.

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