Gautam Adani-led Adani Group has acquired 74% stake in Mumbai International Airport Limited (MIAL)
Adani Enterprises Ltd, through its subsidiary Adani Airport Holdings Limited (AAHL), has entered into an agreement to acquire the debt of GVK Airport Developers Limited (GVKADL),
GVKADL is a subsidiary of GVK Power and Infrastructure Ltd.
Adani Group Holdings
Adani Group will acquire 50.5 per cent stake of GVK group.
Airport Company of South Africa (ACSA)
Adani will also acquire 23.5 per cent stake of minority partners with ACSA and Bidvest
ACSA and Bidvest hold 10 and 13.5 per cent stake respectively in MIAL.
The acquisition will also give Adanis ownership of the upcoming Navi Mumbai airport in which MIAL holds 74 per cent stake.
About the deal
There was immense pressure from the lenders on GVK group as there were upcoming debt payment schedules of MIAL.
GVK’s entire stake in MIAL is pledged with HDFC bank and YES Bank.
According to the agreement, Adani Group will acquire GVK’s debt from lenders.
This will make the group second largest private airport operator after GMR group
Earlier In March 2019, the Adani Group had agreed to acquire 13.5% stake of Bidvest Group for Rs 1,248 crore.
However, GVK Group blocked the deal claiming the right of first refusal, but failed to buy stake in Bidvest and the matter went to court.
Stock Market Impact
The stock price of Adani Ports was trading at Rs 375.85, up Rs 16.25, or 4.52 percent.
It has touched an intraday high of Rs 378.45 and an intraday low of Rs 362.
GVK Power & Infrastructure
The share price of GVK Power & Infrastructure also jumped almost 5 percent in the morning session
Shares of GVK Power & Infrastructure was quoting at Rs 3.43, up Rs 0.16, or 4.89 percent.
There were pending buy orders of 155,534 shares, with no sellers available.
It was trading with volumes of 6,139,052 shares, compared to its five day average of 2,363,945 shares, an increase of 159.70 %
Comment from Civil Aviation Ministry
“I can tell you from my heart the government should not be running airports and the government should not be running airline,”