The Adani Group will acquire GVK Group's stake in Mumbai Airport. The group, led by billionaire industrialist Gautam Adani, said on Monday that its total stake in Mumbai airport would increase to 74 percent after the acquisition. With this, the group will become the country's largest private airport operator. Information sent to the stock markets stated that Adani Airport Holdings Ltd., the principal holding company of Adani Group. (AAHL) Mumbai International Airport Ltd. (MIAL) GVK Airport Developers Ltd. (ADL) has tied up for the acquisition of debt.
This loan will be converted into equity. This will give the Adani Group a 50.5 percent stake in the GVK Group in MIAL. Besides, the Adani Group will also acquire a 23.5 percent stake of Airports Company of South Africa (ACSA) and Bidvest, a minority shareholder in MIAL. The Adani Group said it would also take steps to acquire a 23.5 percent stake in ACSA and Bidvest in MIAL. For this, it has got the approval of the Competition Commission of India (CCI). "After the acquisition of GVK ADL, it will take steps to obtain the necessary traditional and regulatory approvals, enabling it to acquire a controlling stake in MIAL," the group said.
GVK agreed to cooperate
In a separate communication sent to the stock markets by GVK, it has said that it has acquired Adani Airport Holdings Ltd. Has agreed to cooperate with. Under this, Adani will acquire loans from various lenders including group firm Goldman Sash and HDFC. This loan will be converted into equity under mutually agreed terms.
How much was the deal, not disclosed
Both companies have not disclosed the financial side of the deal. The Adani Group said that it would invest in MIAL and also help manage the finances for the Navi Mumbai International Airport so that it could start construction. Moyal holds a 74 percent stake in the airport. GVK founder and chairman GVK Reddy said, "The aviation sector has been badly affected by the Covid-19 epidemic." This region has gone back many years by this epidemic. This has also affected Mayel's financial condition.
Reddy said, "In these circumstances, there was a need to bring in a financially sound investor as soon as possible to improve Mile's financial position and to finance the Navi Mumbai International Airport." This project is of national importance. The Adani Group had agreed to acquire the 13.5 percent stake of South African company, Bidvest in March 2019 for Rs 1,248 crore, but GVK Group had earlier halted the deal citing the denial rights. However, GVK Bid Services Division could not bring any more money to acquire the Mauritius (Bidvest) stake and the matter went to court.
Due to financial constraints, GVK Group has now agreed to sell its stake to Adani Group. It has an agreement to buy the GVK group stake in Mumbai airport and gain control. After the ports, the Adani Group is now betting heavily on the airport sector. It has been empowered to operate six non-metropolitan airports - Lucknow, Jaipur, Guwahati, Ahmedabad, Thiruvananthapuram, and Mangalore - created by the Airports Authority. Now the group is going to acquire the rights to operate the second busiest airport in the country.
GVK group burdened with debt
ACSA holds a 10 percent stake in May. The remaining 26 percent is owned by the Airports Authority of India (AAI). In October last year, burdened by debt, GVK Group raised its 79 percent stake in GVK Airport Holdings to Abu Dhabi Investment Authority (ADIA) and Canada's Public Sector Pension (PSP) Investments and the Public Sector National Investment and Infrastructure Fund (NIIF) 7,614 crore for sale. The amount was to be used by the GVK group to repay its holding companies. GVK said that it has informed ADIA, NIIF, and PSP that the documents related to the deal are canceled. It is no longer effective and implementable.
Adani Group companies' stock boom
Meanwhile, shares of the group companies gained 7.6 percent on Monday after the Adani Group announced its acquisition of GVK's stake in Mumbai Airport. Adani Green Energy's stock rose 7.65 percent on the BSE, while Adani Ports and Special Economic Zone (APS) had a gain of 5.24 percent. Adani Power's stock was also trading up 4.97 percent. Shares of other group companies were also profitable.
COVID-19 Cases Updates: Active cases of coronavirus crossed 6 thousand across the country, with 769 cases reported in the last 24 hours
In the last 48 hours, 769 new cases of coronavirus (Covid-19 Cases Updates) were reported in the country. With this, the number of patients under treatment crossed six thousand. In this regard, the
Kedarnath Yatra: The first phase of heli service for the Dham is completed, now it will start again after the monsoon ends
All the six heli companies operating helicopter services for Kedarnath Dham returned from Kedarghati on Sunday with their seven helicopters. Now this service will start again in the third phase of the
New Zealand crush Sri Lanka in thrilling Test, takes India to WTC finalNz vs SL Test: New Zealand crush Sri Lanka in thrilling Test, takes India to WTC final
In the first Test match played between Sri Lanka and New Zealand (SL vs NZ 1st Test), New Zealand won by 2 wickets. The Indian team has got a big advantage from the victory of the Kiwi team. Team
An alleged picture surfaced before the launch of the Samsung Galaxy Z Fold 5, came to know this big thing
Samsung's name is at the forefront of the foldable smartphone. In the year 2019, with its first foldable smartphone, Samsung Galaxy Fold, the company dominated the market. The company has so far
Earthquake in Taiwan: A strong earthquake caused devastation in Taiwan, many buildings tilted; A Tsunami warning issued
Strong earthquake tremors were felt in Taiwan on Wednesday morning. This earthquake was so strong that many buildings in the southern city collapsed. The Taiwan Meteorological Agency said the
The Kashmir Files Box Office: Vivek Agnihotri's Danka played abroad as well, crossed 300 crores
Vivek Agnihotri's super-duper hit film The Kashmir Files' Danka Saat Samandar Paar is also playing a lot. This film, which narrates the painful story of Kashmiri Pandits, has shocked everyone. The
SRH vs RR: 'Was thinking about Super Over', Pat Cummins made a big revelation after registering a dramatic win over Royals.
Sunrisers Hyderabad captain Pat Cummins said that he was thinking about the Super Over. SRH defeated Rajasthan Royals by 1 run in the 50th match of IPL 2024 on Thursday.
From Delhi to Rajasthan, the situation is bad due to severe heat, and alerts are issued for many states; When will the drops of relief fall?
The heat wave is at its peak across the country at this time. From Delhi NCR to many states of North India, people are finding it difficult to live due to the scorching heat. Fire is raining from the
Weather News: Avalanche alert was issued in Uttarakhand, Meteorological Department told that it will rain in these states of the country
The weather in the country is constantly changing. Sometimes it is suddenly getting cold, and sometimes the strong sun is making people feel hot. In many states including Delhi-NCR, UP, Bihar, and
Lok Sabha Election: A day before counting, there was a commotion in the RJD-BJP office, BSP's statement created a stir in Buxar
Voting for the seventh and last phase of the Lok Sabha elections has ended. All the people involved in the elections are resting. Since Sunday was a holiday, the government employees involved in the
