The Airports Authority of India (AAI) has thrown its weight behind Bid Services Division (Mauritius), an arm of Bidvest, in its stake sale dispute with equity partner GVK group.
The AAI on Wednesday told the Delhi High Court that GVK Airport Holdings has lost the opportunity to exercise the right of first refusal (ROFR) for buying out the 13.5% stake in Mumbai International Airport (MIAL) as the time period to exercise that choice has expired.
Advocate Digvijay Rai said it is now up to the AAI to decide on acquiring the South African firm’s stake. According to the contract, if the AAI doesn’t purchase the shares, its consortium partners can sell to a third party.
According to sources, Bidvest has been in talks with infrastructure major Adani group for sale. GVK owns 50.5% of MIAL, while the AAI owns 26%, Bidvest 13.5% and ACSA owns 10%.
Bidvest claimed that GVK had to complete the acquisition of its 162 million equity shares in MIAL within 30 days of the offer. In this case, the offer was made on March 4, 2019. On the other hand, GVK argued that 30-day clause under the share purchase agreement begins after approval of transaction from competent authorities.
02/05/19 Arun Nayal/Financial Express
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The AAI on Wednesday told the Delhi High Court that GVK Airport Holdings has lost the opportunity to exercise the right of first refusal (ROFR) for buying out the 13.5% stake in Mumbai International Airport (MIAL) as the time period to exercise that choice has expired.
Advocate Digvijay Rai said it is now up to the AAI to decide on acquiring the South African firm’s stake. According to the contract, if the AAI doesn’t purchase the shares, its consortium partners can sell to a third party.
According to sources, Bidvest has been in talks with infrastructure major Adani group for sale. GVK owns 50.5% of MIAL, while the AAI owns 26%, Bidvest 13.5% and ACSA owns 10%.
Bidvest claimed that GVK had to complete the acquisition of its 162 million equity shares in MIAL within 30 days of the offer. In this case, the offer was made on March 4, 2019. On the other hand, GVK argued that 30-day clause under the share purchase agreement begins after approval of transaction from competent authorities.
02/05/19 Arun Nayal/Financial Express
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