Aatmja kumari(Intern Journalist): The Adani Group, led by veteran businessman Gautam Adani, will buy 74 percent stake in Mumbai International Airport Limited (MIAL). In this regard, an agreement has been reached between the Adani Group and the GVK Group. Mumbai Airport is the second largest airport in the country. The Adani Group has given this information in a regulatory filing.
According to the regulatory filing, the Adani Group will buy the entire 50.5% stake in the GVK Group. Apart from this, the Adani Group will also buy a 23.5 percent stake in Airport Company of South Africa (ACSA) and Bidvest. ACSA has a 10 percent stake in Mumbai Airport and a 13.5 percent stake in Bidvest. With this deal, the Adani Group will become the second-largest private operator in the country. Apart from Mumbai Airport, Adani Group has the responsibility of operating 6 more airports. Currently, GMR Group is the largest airport operator in the country, operating Delhi and Hyderabad airports.
As per the agreement between the two companies, the Adani Group will repay the entire debt of GVK Airport Developers, which operates Mumbai Airport. However, the entire debt will be converted into equity. Both the companies have not given the details of the deal amount. Adani Airport Holding Limited said it would provide funds for liquidity needs at MIAL. Apart from this, funds will also be made available for the financial closure of Navi Mumbai Airport.
Despite an agreement to sell the stake to foreign investors, GVK Group has signed a deal to sell the Mumbai airport stake to Adani Group. The Consortium of India’s Sovereign Fund NIIF and Canada’s Public Sector Pension (PSP), led by UAE’s Sovereign Fund Abu Dhabi Investment Authority, inked an agreement with GVK Group in October 2019 to buy a stake in Mumbai Airport.
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