Sunday, February 24, 2019

GVK will increase stake in MIAL to thwart Adani bid

In a bid to scuttle Adani Group’s bid to own a part of the company running the city’s airport, the GVK Airport Holdings Ltd (GVKAHL), which holds the highest stake in the Mumbai International Airport Limited (MIAL), has decided to buy partner company Bidvest’s 13.5 per cent stake.
In keeping with SEBI regulations, the GVK group has intimated its decision to the Bombay Stock Exchange. GVKAHL is a subsidiary of GVK Power and Infrastructure Ltd.
The move comes a day after reports said that Adani Group had made a formal offer to buy the 23.5 per cent stakes of South African firms —Bid Services Division (Mauritius) Ltd (Bidvest) and Airports Company South Africa (ACSA) — which are the joint venture partners of GVK in MIAL. The valuation of the deal was pegged at Rs 9,500 crore.
The development was seen as setting the stage for a protracted battle between Adani and GVK groups for control of MIAL. On Saturday, in a regulatory filing with the BSE, GVK said that it will be buying the 13.5 per cent stake of Bidvest by exercising its “Right of First Refusal” (ROFR).
24/02/19 Satish Nandgaonkar/Mumbai Mirror

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