‘MUMBAI AIRPORT PACT ALLOWS ENTRY OF ADANI ENTERPRISES’

The operation, management, and development agreement between the Airports Authority of India and Mumbai International Airport Pvt Ltd allows the acquisition of GVK Airport Developers Ltd's stake by Adani Enterprises Ltd, a senior civil aviation bureaucrat told Cogencis.

According to the agreement, after the expiry of seven years from the effective date of the signing of the agreement, the prime shareholders, without the approval of the Airports Authority of India, may transfer any stake in the consortium held by them, provided the relevant shareholder continues to hold at least 10% of the issued and paid-up share capital in the consortium and the prime members collectively continue to hold 26% after any such transfer.

On Monday, Adani Enterprises, announced that its airport subsidiary had entered into an agreement to acquire the debt of GVK Airport Developers Ltd.

The Mumbai International Airport Ltd, a consortium led by GVK Airport Developers, operates the Chhatrapati Shivaji Maharaj International Airport in Mumbai and also has the rights for the development of the upcoming airport in Navi Mumbai.

Adani Enterprises will convert the acquired debt to equity in GVK Airport Developers on mutually agreed terms, subject to regulatory approvals, followed by infusion of funds into Mumbai International Airport, and eventually gaining foothold in running the airport.