ADANI ACQUIRES MUMBAI AIRPORT FROM GVK GROUP

Gujarat-based Gautam Adani-led Adani Group will take over the operations of Mumbai airport from Hyderabad-based GVK Group, both companies said in two separate announcements on Monday.

Though financial details of the deal were not revealed, the Adani Group would take over the entire 50.5 per cent stake of the GVK Group and 23.5 per cent shareholding of two other foreign minority investors. As part of the deal, the Adani Group would take over the debt of GVK Airport Developers Ltd.

This deal marks the exit of the GVK Group, which operated prestigious Mumbai and Bengaluru airports, from the airport business in India. It had sold its stake in Bengaluru airport’s operating firm to Hyderabad-born IndianCanadian Prem Watsa’s Fairfax India Holdings Ltd. The GVK Group now operates only one airport in Bali, Indonesia.

G.V.K. Reddy, chairman, GVK Group said, “The aviation industry has been severely impacted by Covid-19, setting it back by many years and has impacted the financials of Mumbai International Airport Ltd. It was, therefore, important that we bring in a financially strong investor.”

The Mumbai airport deal will catapult the Adani Group as the country’s largest private airport operator, an objective set by the company a few months back in its annual report for fiscal year 2020.

The Adanis already run six non-metro airports, built by the Airports Authority of India and has added Mumbai airport to its kitty.