GMR led Hyderabad Airport to divest its fuel farm biz

GMR Hyderabad International Airport Limited is likely to divest majority stake in its Fuel Farm business, Livemint states.

The airport will transfer its fuel farm into a fully owned special purpose vehicle (SPV) that will divest a 74 per cent stake, said the media report.

The SPV will have a 25-year concession from GHIAL and the investor buying a 74 per cent stake in it may be allowed to charge from aviation turbine fuel suppliers an infrastructure fee.

The company has appointed KPMG to advise it on hiving off the fuel farm business and believes that the divestment could increase the cost of fuel, but may help the airport company clean up its books as it seeks the airport regulator's approval for raising tariffs.

GMR Hyderabad International Airport is a JV promoted by the GMR Group with 63 per cent stake in partnership with government of India holding 13 per cent, government of Andhra Pradesh, 13 per cent and Malaysia Airports Holdings Berhad holds 11 per cent stake.

Read more about: gmr
Story first published: Wednesday, June 26, 2013, 12:34 [IST]
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