GVK to sell stake in Singapore arm for $600 mn

GVK Power and Infrastructure is in talks to raise $500 million to $600 million by selling a minority stake in its Singapore arm and is talking to Government of Singapore Investment Corp for a potential deal, two sources with direct knowledge of the matter said.

[caption id="attachment_348759" align="alignleft" width="380" caption="GVK CFO said the company is looking to sell a minority stake in GVK Coal Developers. Reuters"][/caption]

The developer of airports, power projects, roads and mines, will dilute a significant minority holding in GVK Coal Developers (Singapore) Pte, the sources said, adding that a deal could be a precursor to a listing of the company's non-Indian assets in Singapore.

GVK CFO Issac George said the company is looking to sell a minority stake in GVK Coal Developers, which controls coal reserves of about 8 billion tonnes but declined to identify prospective investors or the potential size of a deal.

"We want to do it as early as possible," he said.

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"There are people who have approached us, who have shown tremendous amount of interest," he said.

Reuters