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GMR Group not in talks to buy out Fraport stake in DIAL

Last Updated: Monday, November 5, 2012 - 22:44

Mumbai: GMR on Monday said any stake sale in DIAL that runs the New Delhi airport needs to be considered by the Ministry of Civil Aviation, amidst Germany's Fraport expressing interest in exiting the consortium.

GMR Group is majority stakeholder in the consortium, DIAL, while Fraport holds 10 percent. State-run Airports Authority has 26 per cent while Eraman Malaysia holds 10 percent.

Last week, Fraport AG vice-president, global investments, Kai Zobel had said: "We are talking to our JV partner GMR. Hopefully, we would like to complete the transaction selling our entire stake in DIAL by the second or third quarter of the next fiscal."

However, DIAL, today said: "At this stage, the GMR Group is not engaged in any discussions or negotiations with Fraport on this matter."

Fraport, the world's second largest airports operator, had picked up 10 percent stake in Dial for around Rs 240 crore in 2006 when the government privatised the Delhi airport.

GMR on Monday said it has the right of first refusal on equity of Fraport. "Under the terms of OMDA (operations, management and development agreement), any request for transfer of equity by Fraport can be considered by the ministry of civil aviation/the Airports Authority after completing a seven years lock-in period that ends in May next year," the GMR statement said.

The joint venture consortium has a concession agreement to operate the airport for 30 years.

PTI

First Published: Monday, November 5, 2012 - 22:44
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