Mumbai Airport now owned by Adani Group, now holding 74% stake

 

The Adani Group will acquire GVK Group's stake in Mumbai Airport. The group, led by billionaire industrialist Gautam Adani said on Monday that its total stake in Mumbai airport would increase to 74 per cent after the acquisition. With this, the group will become the country's largest private airport operator. Information sent to the stock markets stated that Adani Airport Holdings Ltd., the principal holding company of Adani Group. (AAHL) Mumbai International Airport Ltd. (MIAL) GVK Airport Developers Ltd. (ADL) has tied up for the acquisition of debt.

 

This loan will be converted into equity. This will give the Adani Group a 50.5 per cent stake in the GVK Group in Mumbai International Airport. In addition, the Adani Group will also acquire 23.5 per cent stake of Airports Company of South Africa (ACSA) and Bidvest, a minority shareholder in MIAL. The Adani Group said it would also take steps to acquire the 23.5 per cent stake in ACSA and Bidvest at Mumbai International Airport. For this, it has got the approval of Competition Commission of India (CCI).

 

Both companies have not disclosed the financial side of the deal. The Adani Group said that it would invest in Mumbai International Airport, as well as help, manage the finances for Navi Mumbai International Airport so that it could start construction. Mumbai International Airport has a 74 per cent stake in the airport. GVK Reddy, founder and chairman of GVK said, "The aviation sector has been severely affected by the COVID-19 epidemic." This region has gone back many years by this epidemic. The financial condition of Mumbai International Airport has also been affected by this.

 

Due to financial constraints, GVK Group has now agreed to sell its stake to Adani Group. It has an agreement to buy the GVK group stake in Mumbai airport and gain control. After the ports, the Adani Group is now betting heavily on the airport sector. It has been empowered to operate six non-metropolitan airports at Lucknow, Jaipur, Guwahati, Ahmedabad, Thiruvananthapuram and Mangalore. Now the group is going to acquire the rights to operate the second busiest airport in the country.

 

ACSA holds a 10 per cent stake in Mayel. The remaining 26 per cent is owned by the Airports Authority of India (AAI). In October last year, burdened by debt, GVK Group raised its 79 per cent stake in GVK Airport Holdings to Abu Dhabi Investment Authority (ADIA) and Canada's Public Sector Pension (PSP) Investments and the Public Sector National Investment and Infrastructure Fund (NIIF) 7,614 crore for sale. The amount was to be used by the GVK group to repay its holding companies. GVK said that it has informed ADIA, NIIF and PSP that the documents related to the deal are cancelled. It is no longer effective and implementable.