Shares of GVK Power & Infrastructure rallied 16 per cent to Rs 8.59 apiece on the BSE in intra-day trade on Monday, after the company announced that GVK Airport Holdings will acquire an additional 13.5 per cent stake in Mumbai International Airport Ltd (MIAL) from South Africa’s Bidvest Group for Rs 1,247.40 crore ($175 million).
GVK Airport Holdings, a step down subsidiary of GVK Power & Infrastructure, has exercised its right, under “Right of First Refusal” in terms of the shareholders agreement dated 4th April 2006.
The Hyderabad-based GVK group informed the exchanges on Saturday that it would acquire 162 million shares, constituting 13.5 per cent of the total capital of MIAL, from Bidvest at the rate of Rs 77 per share. The Rs 1,247-crore deal for Bidvest’s 13.5 per cent stake will increase GVK’s share in MIAL to 64 per cent.
