The Adani Group has taken control of the Mumbai airport and the proposed Navi Mumbai International Airport. Adani Airport Holdings Limited (AAHL), the flagship holding company of the Adani Group for its airports business and a subsidiary of Adani Enterprises Ltd, has entered into an agreement to acquire the debt of GVK Airport Developers Ltd (GVK ADL).
GVK ADL is the holding company through which GVK Group holds 50.50 per cent equity stake in Mumbai International Airport Ltd (MIAL), which in turn holds 74 per cent equity stake in Navi Mumbai International Airport Ltd (NMIAL). While full details of the deal were not disclosed, GVK said the agreement involves Adani’s ability to convert the acquired debt to equity of GVK ADL on mutually agreed terms, subject to obtaining necessary regulatory approvals. MIAL’s total bank loan facility is Rs 9,781 crore.
According to the agreement, AAHL will acquire the debt of GVK ADL from its airport lenders. The GVK group and AAHL have agreed that AAHL will offer a stand-still to GVK in addition to release of the guarantee given by GVK Power and Infrastructure Ltd with respect to the debt acquired by it.
The Adani Group will also take steps to complete the acquisition of a 23.5 per cent equity stake from ACSA and Bidvest in MIAL for which it has obtained CCI approval. After the acquisition of the debt of GVK ADL, the Adani group will take steps to obtain necessary customary and regulatory approvals, as may be required, to acquire controlling interest in MIAL. The balance 26 per cent stake is held by the Airports Authority of India.
“AAHL intends to infuse funds into MIAL to ensure that MIAL receives much needed liquidity and also achieves financial closure of Navi Mumbai International Airport to be able to commence construction,” Adani said.
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