The Adani Group on Monday said that it has acquired a 74% stake in Chhatrapati Shivaji Maharaj International Airport in Mumbai. With the acquisition, the group turned out to be the country’s biggest private airport operator.
According to a regulatory filing, Adani Airport Holdings Ltd (AAHL) “has entered into an agreement to acquire the debt of GVK Airport Developers Ltd (ADL)” in Mumbai International Airport Ltd (MIAL), which will be converted into an equity stake. AAHL is the flagship holding company of Adani Group for its airport business.
This conversion would lead to Adani Group getting all of.50.5 percent stake of GVK Group. The acquisition will also give the Adanis ownership of the upcoming Navi Mumbai Airport, in which MIAL holds a 74% stake.
“The GVK Group and AAHL have agreed that AAHL will offer a stand-still to GVK, in addition, to release the guarantee given by GVK Power and Infrastructure Ltd with respect to the debt acquired by it,” the company said in the filing.
The two firms, however, did not give details of the financial terms.
Adani said it will infuse funds into MIAL as well as help achieve financial closure of Navi Mumbai International Airport so as to commence its construction. MIAL holds 74 percent interest in the airport.
The deal comes after the Central Bureau of Investigation (CBI) earlier this month charged the GVK Group with siphoning off funds totalling Rs 705 crore. It is charged with causing a loss of Rs 310 crore to the exchequer by entering into fake work contracts on the land given by the government.
Meanwhile, with the center’s move to lease out the airport operations to private players, Adani Group has won the bids to run six Airport Authority-built non-metro airports in Lucknow, Jaipur, Guwahati, Ahmedabad, Thiruvananthapuram, and Mangalore.