"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 the CCI approval. Upon the acquisition of the debt of GVK ADL, Adani Group will take steps to obtain necessary customary and regulatory approvals, as may be required, to acquire controlling interest in MIAL," the filing said.
What’s the agreement?
As per the news agency PTI, Adani Group is set to acquire a 74 per cent stake in Mumbai International Airport Limited (MIAL) that operates India’s second-largest airport in Mumbai.
As per the agreement, Adani Airport Holdings Limited (AAHL), the holding company of Adani Group for its airports business and a subsidiary of Adani Enterprises Limited (AEL) has signed the agreement to acquire the debt of GVK Airport Developers Ltd (GVK ADL).
Basically GVK ADL is the holding company through which GVK Group holds 50.50% equity stake in Mumbai International Airport Limited (“MIAL"). It also means that GVK ADL also holds 74% equity stake in Navi Mumbai International Airport Limited.
However, GVK had approached the court with an intention to block the attempts of sale citing they have a right to the first refusal. However, the company failed to accumulate funds.
As per the agreement, Adani Airport will acquire the debt of GVK ADL from its airport lenders.
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How does it fuel the Group’s aviation ambition?
Recently, AEL has got the approval of the Cabinet for transfer of six airports on 50-year leases which will allow the company to take control of the airports in Ahmedabad, Lucknow, Mangaluru, Jaipur, Thiruvananthapuram, and Guwahati.
Reports suggest that Adani Airport is likely to infuse funds into Mumbai International Airport to ensure that MIAL receives much-needed liquidity and receives the financial closure of Navi Mumbai International Airport to be able to begin construction, Adani Enterprises said.