GVK Airport Holdings Private Limited, a subsidiary of GVK Power & Infrastructure Limited (GVKPIL), on Tuesday, acquired 10,80,00,000 equity shares worth Rs10 each (amounting to a 13.5% equity stake) in Mumbai International Airport Pvt Ltd (MIAL) from Bid Services Division (Mauritius) Limited for a sum of US$231 million.
With this acquisition, the equity shareholding of GVK in MIAL increased to 50.5% from 37%. The MIAL now is a subsidiary of GVK Airport Holdings Private Limited.
“The Chhatrapati Shivaji International Airport (CSIA) is GVK's first and flagship airport project in India. With the completion of this acquisition, GVK will have a majority control in one of India's largest and prestigious infrastructure projects. It also underscores our long term commitment and strategic interest in the airport sector in India,” GVKPIL chairman GVK Reddy said. GVK is the country’s largest private airport operator. It operates India's two key airports - the CSIA, Mumbai and the Bengaluru International Airport, Bengaluru. The two airports together account for passenger traffic of about 43 million for the financial year 2011-2012, as per projections.
MIAL was awarded the mandate for operating and modernising the CSIA, Mumbai (CSIA) in April 2006.
“Ever since taking over airport operations, MIAL has brought about a number of changes at the CSIA, with an ongoing focus on passenger convenience and comfort in the long term. MIAL is implementing a master plan, which includes building a new integrated passenger terminal at Sahar with infrastructure and facilities to cater to passenger traffic of 40 million per annum,” a company press release said.