Adani Group looks to buy GVK’S 50.5% stake in Mumbai airport

AN ANNOUNCEMENT REGARDING THE DEAL IS EXPECTED TO BE MADE IN THE COMING WEEKS

MUMBAI: The Adani Group is in talks to acquire the GVK group’s stake in Mumbai International Airport Ltd (MIAL), PTI reported on Monday.

The group controlled by billionaire Gautam Adani plans to acquire the 50.5 % stake held by the GVK Group in MIAL and a further 23.5% from GVK’S minority partners—airports Company South Africa (ACSA) and the Bidvest group, giving it majority control of the secondbusiest airport in the country, according to the report. The remaining 26% stake is held by state-run Airports Authority of India (AAI).

Initial talks between the two business groups have begun and a preliminary announcement regarding the deal is expected to be made in the coming weeks, according to PTI.

The Adani Group had in March 2019 agreed to buy South African company Bidvest’s 13.5% stake in MIAL for ₹1,248 crore, indicating its interest in running the airport. GVK, however, blocked the deal claiming the right of first refusal, although it was not able to exercise the right by making a matching offer.

In October, GVK agreed to sell its 79% stake in GVK Airport Holdings for ₹7,614 crore to the Abu Dhabi Investment Authority, Canada’s Public Sector Pension Investments, and state-owned National Investment and Infrastructure Fund. The agreement is, however, still to be executed.

The Economic Times reported on Monday that this investor consortium has agreed to give a ‘carve-out’ to the promoters of GVK, the Reddy family, so as to allow them to sell stake in MIAL.

GVK is believed to use the proceeds from this sale to retire the debt obligations of its holding companies and fend off a takeover battle for MIAL from the Adani group.