US buyouts firm TPG Capital is competing with Singapore sovereign fund Temasek, Canada’s CPP Investment Board and Prem Watsa’s Fairfax Financial Holdings to acquire as much as 49% of Mumbai’s airport operator from the GVK group.
A possible deal will value Mumbai International Airport Ltd (MIAL), which manages the country’s second-busiest airport, at Rs 12,500-15,000 crore, multiple sources close to the negotiations told ET.
The transaction would be similar to the arrangement that GVK has done in Bengaluru earlier this year, when it sold a 33% stake to India-born Canadian billionaire Watsa’s Fairfax for Rs 2,200 crore, they said.
A stake in MIAL would give these financial investors a piece of the nation’s fast growing civil aviation market.
For Secunderabad-based GVK, which owns 50.5% of MIAL, selling the stake would bring funds to reduce debt but could also see its near exit from the operator of the prestigious Chhatrapati Shivaji International Airport in the commercial capital.
Goldman Sachs and Bank of America Merrill Lynch are running a formal process to help GVK find an investor, sources said.
“A process is on. The negotiations are to find an investor to a specific operational asset — something that we have done in Bangalore. We hope to conclude it as soon as possible, perhaps in this calendar year itself,” a person close to GVK said. Wayne Gretzky Authentic JerseyShare This