Adani may bid through MIAL in next round of privatisation
Adani Group is likely to make Mumbai International Airport Ltd (MIAL) its primary vehicle to acquire airports in the upcoming round of privatisation, people aware of the development said. The Airports Authority of India (AAI) is set to invite bids for six to 12 airports early next financial year from private enterprises for the next round of airport privatisation.
The conglomerate has started the process of shifting headquarters of its airport business to Mumbai from Ahmedabad, where it is currently situated, and is in the process of reshuffling the top management at the airport.
Sources aware of the development said the group had appointed Prakash Tulsiani, former chief executive officer (CEO) of logistics company Allcargo Logistics CEO of MIAL. He will replace Rajeev Jain.
Adani Group had earlier this year entered into an agreement with GVK Group and two South African companies — Bidvest and Airport Company of South Africa to acquire 74 per cent in MIAL.
“Jain will be moved to the board. While there will be more changes, Adani Group is mindful of the fact that it can use the human resources of MIAL to build up its airport vertical. MIAL executives are likely to be elevated to key positions at group level to oversee the airport business,” a person aware of the development said.people tracking the sector said the acquisition of MIAL had come at a “great price” for Adani.
Adani Group paid ~1,685 crore to the minority partners for a 26 per cent stake while it has valued GVK Airport Developer’s 50.5 per cent stake at zero value. Instead, it takes over the debt of GVK of around ~2,507. 95 crore, which, on full conversion, will be 95 per cent of the paid-up capital of the company.
“Groupe ADP acquired 49 per cent in GMR Airports for ~9,720 crore, compared to that Adanis got a marquee asset like