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Adani Airports to acquire controlling interest in Mumbai Airport
Company to acquire debt of GVK Airport Developers Limited
Mumbai, August 31, 2020
Adani Airport Holdings Limited (AAHL), a part of the Adani Group, has entered into an agreement to acquire the debt of GVK Airport Developers Limited (GVKADL) as part of a move that will give it controlling interest in Mumbai International Airport Limited (MIAL).
"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," Adani Enterprises Limited (AEL) informed the stock exchanges in a filing today.
AAHL is the holding company of the Adani Group for its airport business and a subsidiary of AEL.
GVK ADL is the holding company through which GVK Group holds 50.50% equity stake in MIAL, which, in turn, holds 74% equity stake in Navi Mumbai International Airport Limited (NMIAL).
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 Limited with respect to the debt acquired by it. The Adani Group will also take steps to complete the acquisition of a 23.5% equity stake from ACSA and Bidvest in MIAL for which it has obtained Competition Commission of India (CCI) approval.
"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," the company added.