Fairfax Holdings, Changi in talks with GMR to invest Rs. 3,200 crore for 30% stake in airport biz.

Prem Watsa-controlled Fairfax Financial Holdings and Singapore's Changi Airports International are in talks with GMR Group to invest around Rs. 3,200 crore to pick up a 30% stake in the latter's airport business as the Indian infrastructure developer plans to cut debt and consolidate operations.

Global buyout funds KKR & Co and Apollo Global Management are also in the fray to invest in the airport business, multiple sources told ET.

GMR has mandated Credit Suisse to run a formal fund-raising process, the people said, adding that the deal would value GMR Airports at around Rs 10,000 crore. The exercise began after plans for an initial public offering (IPO) got bogged down amid lacklustre demand for Indian infrastructure assets. The Bengaluru-based group is open to diluting up to 49% equity in airports business to a strategic investor or multiple financial sponsors. GMR runs the airports at Delhi and Hyderabad apart from overseas interests.

The money raised will be used to repay debt and provide an exit to private equity investors. The group had net debt of Rs. 40,500 crore at the end of September.


ET