Mumbai : India’s one of the growing industry, the Adani Group, led by the veteran industrial leader, Gautam Adani, on Monday acquired the second busiest airport of the country, the Mumbai airport. The company has reached an agreement to acquire GVK Group’s shareholding and control the airport.
According to available information, the Adani Enterprises Ltd, through its subsidiary, The Adani Airport Holdings has “entered into an agreement to acquire the debt of GVK Airport Developers,” the Adani Enterprise said in a regulatory filing. The GVK Group holds 50.50 per cent equity stake in Mumbai International Airport Limited (MIAL). The debt will be converted into equity.
It was said that as the agreement, AAHL will acquire the debt of GVKADL from its airport lenders. The GVK Group and AAHL have agreed that AAHL will also offer a stand-still to GVK to release of the guarantee given by GVK Power and Infrastructure Limited with respect to the debt acquired by it.
The GVK said the agreement with Adani included the acquisition of debt by Adani from various GVK lenders, including a Goldman Sachs-led consortium and HDFC; releasing GVK of various obligations, securities and corporate guarantees given in respect of debt to be acquired by Adani; Adani converting the acquired debt to equity of GVKADL on mutually agreed terms; and the infusion of funds by Adani into MIAL to provide liquidity support.
An agreement signed in October 2019, where Abu Dhabi Investment Authority, Canada’s Public Sector Pension Investment Board, and state-backed National Investment and Infrastructure Fund sought to buy a 79.1% stake in GVK Airport Holdings for Rs 7,600 crore, stands terminated.
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. It is under these circumstances that we agreed to cooperate with Adani so as to achieve these twin objectives. Further, when the transaction is consummated, which is subject to customary approvals, we would be reducing a significant portion of liabilities to our lenders, which is of utmost importance to the group,” said Dr. GVK. Reddy, Founder & Chairman of GVK.