homeaviation NewsTata Group reduces proposed stake in GMR Airports to meet regulatory norms, says report

Tata Group reduces proposed stake in GMR Airports to meet regulatory norms, says report

Tata Group reduces proposed stake in GMR Airports to meet regulatory norms, says report
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By CNBC-TV18 Oct 30, 2019 11:03:13 AM IST (Published)

The Tata Group has decided to bring down the stake it had proposed to acquire in GMR Airports (GAL) to about 15 percent from 20 percent announced previously, The Economic Times reported, citing people with knowledge of the plan.

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The move, the report said, is to comply with a rule that bars groups that own airlines to also hold more than 10 percent in an airport operator.
By limiting its holding, Tata will be able to keep its effective stake in Delhi International Airport Ltd (DIAL), the GAL unit that runs the airport, to less than 10 percent, the report added.
Tata Group holds a majority stake in not one but two airlines — Air Asia India and Vistara. Due to this, the report added, the Airports Authority of India had opposed the GMR Group-Tata deal.
However, with the new formula, this deadlock is expected to be lifted. “The new holding structure has been finalised within the investors and been sent to AAI for approval, which has to give its go ahead for the deal,” a source was quoted as saying in the report.
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