Adani Enterprises to buy controlling stake in Mumbai Airport, enters in agreement with GVK; stock volatile

Adani decides to infuse funds into Mumbai airport for ensuring that the airport receives much-needed liquidity.

Aug 31, 2020 10:08 IST India Infoline News Service

Adani Enterprises on Monday announced that its subsidiary Adani Airport Holdings (AAHL) has entered into an agreement with GVK Airport Developers Limited (GVK ADL) to acquire a controlling stake in Mumbai airport.

AAHL is the flagship holding company of Adani Group for its airports business. While GVK ADL is the flagship company of GVK Group for its airports business.

Through GVK ADL, the GVK Group holds  50.50% equity stake in Mumbai International Airport Limited (MIAL), which in turns holds 74% equity stake in Navi Mumbai International Airport Limited (NMIAL).

Adani decides to infuse funds into MIAL for ensuring that MIAL receives much-needed liquidity and also achieves financial closure of NMIAL to be able to commence construction.

In its regulatory filing, Adani Enterprises said that GVK Group and AAHL have agreed that AAHL will offer a stand-still to GVK, also, to release of the guarantee given by GVK Power and Infrastructure Limited with respect to the debt acquired by it.

Further, as part of the agreement, Adani Group will also acquire a 23.5% equity stake from ACSA and Bidvest in MIAL for which it has obtained CCI approval.

Adani Enterprises said, "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."

Following the announcement, Adani Enterprises' surge by 3% on Sensex with an intraday high of Rs297.55 per piece before correcting. However, at around 10.29 am, the stock is trading at Rs287.20 per piece down 0.36% on the index.

The stock has opened broadly subdued at Rs288.20 per piece compared to the previous closing, but saw upside when the deal was announced, however, has given away early gains on the current level.

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