Tuesday, August 25, 2020

Adani Group in talks to buy out GVK and some partners in Mumbai Airport

New Delhi: Billionaire Gautam Adani's Adani Group is in talks to buy out GVK NSE 0.84 % and some of its partners in the Mumbai Airport as it aims to become the country's biggest private airport operator.
Adani Group is in talks to acquire a 50.5 per cent stake held by GVK Group in Mumbai International Airport (MIAL) and another 23.5 per cent of minority partners, Airports Company South Africa (ACSA), and Bidvest Group, two sources with knowledge of the matter said.
The spokesperson of both Adani and GVK refused to comment.
Adani Group had in March 2019 agreed to acquire 13.5 per cent stake of South African company, Bidvest for Rs 1,248 crore.
However, GVK Group blocked the deal claiming the right of rst refusal. But GVK couldn't bring money to the table to buy Bid Services Division Mauritius' (Bidvest) stake and the matter went to court.
With GVK Group's nances under strain, it has now come around to the idea of selling the stake to Adani Group, they said.
After seaports, Adani Group is betting big on the airports sector and has won the bids to run six Airport Authority-built non-metro airports in Lucknow, Jaipur, Guwahati, Ahmedabad, Thiruvananthapuram, and Mangalore.
It now wants to enter the country's second busiest airport by buying out Bidvest from MIAL, which was stalled after GVK chose to exercise its rst right of refusal, and matched the oer that the Adanis made to Bidvest.
Sources said preliminary discussions have taken place between Adani and GVK which may lead to the Hyderabad-based group exiting the prestigious Mumbai airport venture.
ACSA owns 10 per cent in MIAL and the balance 26 per cent stake is held by the Airports Authority of India (AAI).
In October, debt-laden GVK Group entered into an agreement to sell 79 per cent of its stake in GVK Airport Holdings for Rs 7,614 crore to the Abu Dhabi Investment Authority (ADIA), Canada's Public Sector Pension (PSP) Investments, and state-owned National Investment and Infrastructure Fund (NIIF).
Proceeds from this transaction were to be used by GVK to primarily retire the debt obligations of its holding companies.
It is not known if GVK got all the funds from the deal.
24/08/20 PTI/Economic Times

To Read the News in full at Source, Click the Headline


Post a Comment