GVK group, which won the contract for moderising the Mumbai international airport is bringing all its power and infrastructure assets into one umbrella.
As part of the consolidation, all the infrastructure assets in power, airport, road, and mining will come under GVK Power & Infrastructure Limited (GVKPIL).
This enables the investors more exposure to the entire portfolio of GVK assets and allow them to invest more or less all infrastructure assets of the company.
As a result of the consolidation, Mumbai International Airport Pvt Ltd (MIAL), which operates India’s busiest airport, the Chhatrapati Shivaji International Airport in Mumbai, and GVK Jaipur Expressway Pvt Ltd, which operates the six-lane toll road project on the Golden Quadrilateral will come under GVKPIL.
The appointed date of merger is proposed to be April 1, 2006.
The Board of Directors of GVKPIL, the Board of Directors of Bowstring Projects & Investments Private Limited (Bowstring) and the Board of Directors of Green Garden Horticulture Private Limited (Green Garden), in separate meetings, approved a proposal for the amalgamation of Bowstring & Green Garden with GVKPIL.
Bowstring and Green Garden, both closely held unlisted companies, hold equity stakes in various power and infrastructure projects of GVK.
The Scheme of Amalgamation approved by the respective Boards envisages a share exchange ratio of 133 equity shares of GVKPIL, for every four equity shares of Bowstring and of 153 equity shares of GVKPIL, for every four equity shares of Green Garden. The proposed scheme also envisages a share exchange ratio of 3 equity shares of GVKPIL for every 40 equity shares of GVKIL.