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Corporate Dec 26, 2011

Singapore’s Changi may buy stake in GVK’s airport biz, stock up 7%

Singapore's Changi Airports Group is in talks to buy a 26 percent stake in the airport business of GVK Power & Infrastructure's, the Economic Times reported.

Government-owned Changi is likely to pay GVK between Rs 2,000 crore and 2200 crore for the stake, the paper reported on Monday, citing people close to the deal. GVK Power rallied 9 percent after the Economic Times reported the news adn is currently trading at Rs 11.1, up 7 percent.

AFP

At the top end of that range, GVK's overall airport business would be worth Rs 8000 crore .

"The deal is in the final stages, and an announcement is likely to be made in January," a person familiar with the situation told the paper.

GVK operates airports at Mumbai and Bangalore, and owns stakes in both. It also holds the first right of refusal to develop a planned airport at Navi Mumbai, for which bids are expected to be invited next year.

The deal would help GVK secure an international partner with deep pockets ahead of the Navi Mumbai airport bid, and give Changi a stake in two of the country's biggest airports.

GVK spokesman Arun Arora said the company did not comment on market speculation.

Agencies

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