GVK Power & Infrastructure is in talks to sell its airport business – or an equity stake in it – in order to reduce its debt mountain. In the year to March, the company generated revenue of INR 28,210m ($469m), but produced a net loss of INR 3,690m ($61.3m).

 

The Hyderabad-based Indian group has a mandate to operate, manage and develop Chhatrapati Shivaji International Airport (CSIA) in Mumbai [where DFS/Flemingo and Nuance operate retail stores], see left, and also has a 43% stake in Kempegowda International Airport, Bengaluru [where Nuance has the main DF&TR concession], see below right.

 

GVK was also invited by the Indonesian Government to develop new airports in Bali [where DF&TR developments are already advanced] and Yogyakarta in Java which has had a feasibility analysis and GVK is ready with a master plan for construction.

 

In a statement, the company says: “The company is exploring various options for reducing some of its debt. An option that is being looked at is raising equity at the Airport Holding Company, to retire the debt raised for the airport acquisition. The company is in discussion with a few investors in this matter.”

 

GVK is also looking at the possibility of bringing in an equity investor(s) into Hancock Infrastructure, a holding company for its rail and port projects in Australia. 

It adds: “Since the discussions are at a preliminary stage, it would not be appropriate for the company to divulge any details. No sooner the deal crystallises, we would be in a position to inform the regulatory authorities.”