Adani Group reaches agreement with GVK to acquire 74% stake in Mumbai airport

Gautam Adani-led Adani Group on Monday announced that it had reached an agreement to acquire 74 per cent stake in Mumbai International Airport Limited (MIAL) under GVK Group's shareholding and control. According to the press release, Adani Airport Holdings has entered into an agreement to acquire the debt of GVK Airport Developers, which holds 50 per cent equity stake in Mumbai International Airport Limited (MIAL). The debt will be converted into equity as a result of which Adani would acquire a 74% stake in MIAL. 

"Adani Airport Holdings Limited intends to infuse funds into MIAL to ensure that MIAL receives much needed liquidity and also achieves financial closure for Navi Mumbai Airport," the company said in a statement.  "The Adani Group will also take steps to complete the acquisition of a 23.5 per cent equity stake from ACSA (Airports Company of South Africa) and Bidvest in MIAL for which it has obtained Competition Commission of India’s approval," it added.

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GVK Groups issues statement

Commenting on the development, Dr GVK Reddy, Founder and Chairman of GVK Group said, "The aviation industry has been severely impacted by COVID-19, setting it back by many years and has impacted the financials of Mumbai International Airport Limited."

"It was therefore important, that we bring in a financially strong investor in the shortest possible time to improve the financial position of MIAL, as well as to help achieve Financial Closure of the Navi Mumbai International Airport project, which is a project of national importance," he added.

With 50 per cent stake of GVK, Adani's total holding in Mumbai airport will be 74 per cent. This will make the group second-largest private airport operator with 6 airports in its kitty. The firms are yet to give financial details of the deal. 

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(With Agency Inputs)