Fraport not in talks for selling stake in airport: DIAL

Fraport not in talks for selling stake in airport: DIAL

Delhi International Airport Pvt. Ltd (DIAL) has denied media reports that Germany’s Fraport AG, which owns 10 per cent stake in the airport, is looking to exit the joint venture.

DIAL is controlled by the GMR Group, which owns a controlling 54 per cent stake in the airport. Other shareholders include the Airports Authority of India (26 per cent), Fraport (10 per cent) and Eraman Malaysia (10 per cent).

“DIAL has noted recent items in the media which quote senior officials of Fraport AG stating the company will be divesting its equity in DIAL.  It is a matter of record that Fraport has been a shareholder holding 10 per cent equity in DIAL since inception and that the GMR Group has a right of first refusal on equity of Fraport. Under terms of OMDA (operation, management and development agreement), any request for transfer of equity by Fraport can be considered after seven years i.e. after May 2013. Hence, at this stage, the GMR Group is not engaged in any discussion or negotiation with Fraport on this matter," a note by the DIAL spokesperson said.

Last week media reports had said that Fraport was looking to exit the joint venture over poor regulatory environment and the way the government handled the infrastructure sector.

“We expect the process of selling our 10 per cent holdings in the Delhi airport to be done by next June,” Fraport vice-president for global investments Kai Zobel had told mediapersons.