Amarchand and AZB advise on GVKs enhanced investment in Mumbai Airports

GVK Airport Holdings Private Limited (GAHPL), a subsidiary of infrastructure giant GVK Power & Infrastructure Limited, operates and manages the Mumbai International Airport (MIAL) has bought an additional 13.5 percent in MIAL from its South African partner, Bid Services Division (BSDM) for $280 million (approximately Rs. 1200 crore). As a result GVK scales up its stake to just over 50 percent.

Amarchand & Mangaldas advised long standing clients GVK Airports with a team led by Partner  L. Viswanathan. Viswanathan has previously advised GVK on the Zurich Airport deal and more recently advised GVK Energy in fundraise from Actis and GIC.

AZB & Partners advised Bid Services Division with a team led by Partner Rajendra Barot.

The Deal Curry reports that with this deal, GVK Airport's holding in MIAL has increased to 50.5 percent from 37 percent. BDSM is a subsidiary of Bidvest based in Johannesburg with interest in car retailing and agriculture.  Post this deal, Bidvest will hold 18.5 percent stake in MIAL. Earlier it was planning to exit from MIAL, but it is under an obligation to hold a minimum of 10 percent equity for seven years. The first right of refusal lies with GVK Power.