Adani to acquire Mumbai airport

Adani Airport Holdings (AAHL), which is a subsidiary and flagship holding company of Adani Group for its airport business, is all set to acquire Mumbai International airport subject to approval.

In Brief

 Chhatrapati Shivaji Maharaj International Airport, erstwhile known as Sahar International Airport, is the second busiest airport in the country after Delhi airport in terms of passenger handling. The said airport which is a Joint Venture between the Airports Authority of India (AIA) and the GVK Industries Ltd is operated by Mumbai International Airport Limited (MIAL). GVK Industries is a private entity which was appointed by the government in February 2006 to carry out the modernisation of the Airport.

GVK Airport Developers Limited (GVK ADL) the subsidiary of GVK Group holds 50.50% equity stake in Mumbai International Airport Limited (MIAL), which 74% equity stake in Navi Mumbai International Airport Limited.  As per the agreement, Adani Group through its subsidiary acquired the debt of GVK ADL which was due to its airport lenders like ACSA and Bidvest. The Adani Group also agreed on a stand still offer to GVK. The Group will now take steps to complete the- acquisition of a 23.5% equity stake from ACSA and Bidvest in MIAL which is the lenders to GVK ADL. The approval for same has already been obtained by CCI (Competition Commission of India).  Now, since the acquisition of the debt is complete the Adani Group will take steps to obtain necessary customary and regulatory approvals, which will finally enable the group to acquire controlling interest in Mumbai International Airport.

Month: Current Affairs - August, 2020