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.
Monsoon rains are being seen in many states of the country. According to the forecast of the Mete
The earthquake that occurred on February 6 in Turkey and Syria caused severe devastation. More th
In the last two years, there has been a 20% increase in the cases of execution of criminals world
These days a light pink cold is being felt in the morning in New Delhi. At the same time, the sun
Russian President Vladimir Putin has ordered his army to surround Ukraine's last stronghold, Mari
Due to increasing cases of the corona, a lockdown has been announced in Kerala fro
Relief: One insurance for more than one vehicle, now concession in premium on good and safe driving
Having more than one car and two-wheeler will now have a single insurance policy. There is no nee
New Delhi, Agencies. Vaccination continues amid the growing threat of the coronavirus in the coun
Allu Arjun and the makers of 'Pushpa-2' have announced to give Rs 2 crore to the family of the wo
Mumbai Police arrested Arnab Goswami, Editor-in-Chief of Republic TV on Wednesday morning. Arnab
