Tuesday, February 09, 2021

Acsa sells stake in Mumbai airport for R1.3bn as it battles Covid environment

Johannesburg: Airports Company South Africa (Acsa) has sold its 10 percent stake in India-based Mumbai International Airport Private Limited (Mial) for 6.16 billion Indian rupees, or about R1.3bn, the government-owned company said esterday.

Mial was one of two international airport investments that were owned by Acsa. The other is in Brazil, through the Guarulhos International Airport in São Paulo.

The India-based Adani Group acquired the stake, as well as a 13.5 percent stake in Mial that was owned by Bidvest's Bid Services Division, according to a report by The Hindu BusinessLine website.

Acsa made a R1.2bn profit in the year to March 31, 2020, but it warned in its annual report that the chaos to the global tourism and aviation industry that had been wreaked by the Covid-19 pandemic, and the consequent reduction in demand at airports, meant it would require new strategies and financial plans to ensure its future viability, while additional support from funders and its main shareholder the government, would be required.

It took the initial decision to sell the stake in the India airport following the demise of Jet Airways in India in February 2019, which had led to a loss of aeronautical and non-aeronautical revenues in Mumbai International Airport.

In the airport's 2019/2020 financial year, the airport generated losses of R161 million by processing 36 million passengers.

09/02/21 Edward West/IOL

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