Wednesday, November 06, 2019

Mumbai International Airport stake sale: Bombay HC rejects Adani plea against Bidvest

In a setback for the Adani Group, the Bombay High Court (HC) on Wednesday rejected a plea by Adani Properties seeking interim relief to restrain Bidvest from selling its stake in Mumbai International Airport (MIAL) to third parties, including the GVK group. The move comes a day before the Adani Group’s share purchase agreement (SPA) for Bidvest’s 13.5% stake in MIAL lapses.
The Adani Group and GVK Group have been engaged in a legal battle since March to buy out Bidvest’s stake in one of the world’s busiest airports. Adani Properties, which in March entered an agreement with Bid Services Division (Mauritius) to buy out Bidvest’s stake in MIAL, had on September 4 moved the Bombay HC seeking to enforce the stake sale contract, which lapses on November 7. The plea also sought directions from the court to declare the SPA as “valid, subsisting and binding”. Additionally, it sought to restrict Bidvest from selling shares to any third parties.
On Tuesday, Darius Khambatta, Adani Group’s counsel, had told the court that the group was willing to immediately deposit the agreed upon price of around Rs 1,248 crore for Bidvest’s stake in MIAL, if Bidvest agreed to extend the long-stop date for the SPA to February 7, 2020.
A long-stop date is the deadline by which two parties must execute an agreement, failing which the agreement lapses. The Adani Group required the extension as Bidvest and Adani were yet to receive all necessary regulatory approvals to execute the SPA. “Bidvest has not agreed to extend the long-stop date, and the share purchase agreement with Adani lapses on Thursday,” the company’s counsel Janak Dwarkadas told FE.
07/11/19 Financial Express

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