Gautam Adani, CEO and Founder of Adani Group has successfully acquired 74% stakes in Mumbai International Airport Limited (MIAL) that regulates the India’s Second Largest Airport in Mumbai.
Adani Group says it has reached agreement to acquire 74 pc stake in Mumbai airport
— Press Trust of India (@PTI_News) August 31, 2020
Adani group under the transaction will acquire 50.5 per cent stake of GVK group. Reportedly according to sources, Adani will be also be acquiring 23.5 per cent stakes of minority partners Airport company of South Africa (ACSA) and Bidvest.
MIAL will comprise of 10 and 13.5 per cent of ACSA and Bidvest respectively. GVK had approached to court to block the attempts of sale citing they have a right to first refusal. Allegations were such as the company is not able to garner funds.
GVK group and Adani have agreed on the point where Adani will offer stand still to GVK in condition to release of the guarantee given by GVK power and infrastructure limited with respect to the debt acquired by it.
“Adani Airport Holdings Limited intends to infuse funds into MIAL to ensure that MIAL receives much needed liquidity and also achieves financial closure for Navi Mumbai Airport,” as per company’s statement.
“There was immense pressure from the lenders on GVK group as there were upcoming debt payment schedules of MIAL. The banks were particularly concerned as they felt that parent firm’s poor liquidity position worsened by the effect of coronavirus on airport business will make it difficult to stick to repayment.
The transaction is positive for everyone,” said a banker involved in the process. He said that GVK’s entire stake in MIAL is pledged with HDFC bank and YES Bank.