NEW DELHI: Paving the way for billionaire group Gautam Adani to acquire a majority stake in Mumbai airport from GVK Group, the two corporations announced on Monday reaching an agreement for Mumbai International Airport Limited (MIAL), as well as the upcoming airport Navi Mumbai. the Adani Group will acquire 74% of MIAL, 50.5% of GVK, Airport Company of South Africa (10% of ACSA) and 13.5% of Bidvest of South Africa. The remaining 26% will be with the Airports Authority of India (AAI).
Adani Group will also “achieve financial closure of the Navi Mumbai International Airport project as soon as possible to begin construction.” The Adani Group had emerged as the highest bidder to operate six AAI airports – Jaipur, Guwahati, Thiruvananthapuram, Ahmedabad, Lucknow and Mangaluru – in PPP form for 50 years. the Kerala The government opposes the handover of T’puram airport to Adani. With the second busiest airport in India, CSMIA Mumbai, and the upcoming Navi Mumbai also in its portfolio, Adani Group emerges as one of the largest private airport developers in India.
In an EEB presentation, Adani Enterprises Ltd said on Monday: “Adani Airport Holdings Limited (AAHL), the Adani Group’s flagship holding for its airports business (and a subsidiary of Adani Enterprises Limited) has signed an agreement to acquire the debt of GVK Airport Developers Limited (GVKADL). GVK ADL is the holding company through which GVK Group has a 50.50% stake in MIAL, which in turn owns 74% of the share capital in Navi Mumbai International Airport Limited (NMIAL). Under the agreement, AAHL will acquire GVKADL’s debt from its airport lenders. ”
“The GVK Group and AAHL have agreed that AAHL will offer a stand-still to GVK, in addition to the release of the guarantee granted by GVK Power and Infrastructure Limited in respect of the debt acquired by it. The Adani Group will also take steps to complete the acquisition of a 23.5% shareholding of ACSA and Bidvest in MIAL for which it has obtained CCI approval. Following the acquisition of GVK ADL debt, Adani Group will take the necessary steps to obtain the necessary regulatory and customary approvals, as necessary, to acquire a majority stake in MIAL. AAHL intends to infuse funds in MIAL to ensure MIAL receives much needed liquidity and also achieves financial closure of Navi Mumbai International Airport in order to begin construction, ”said the Adani Group regulatory filing.
In a statement, the GVK Group said that the other terms of the GVK-Adani deal include: “Adani’s acquisition of debt from various GVK lenders, including a consortium led by Goldman Sachs and HDFC; release GVK from various obligations, securities and corporate guarantees granted with respect to the debt to be acquired by Adani and Adani’s ability to convert the acquired debt into equity of GVK Airport Developers Ltd (GVKADL) on mutually agreed terms, subject to the obtaining the necessary regulatory approvals. ”
“Separately, GVK has notified the Abu Dhabi Investment Authority (ADIA), the National Fund for Investment and Infrastructure (IFRS) and the PSP, that the transaction documents are rescinded as they are no longer effective or enforceable. . The reason for this decision was a) the terms of the transaction contemplated in the transaction documents were not enforceable and b) the alternative proposals discussed would not provide a resolution to the lenders by the end of August, which was a requirement of our lenders. “The GVK Group said in a statement.
Last October, GVK Group had reached an agreement to secure Rs 7,614 million financing from ADIA, the Public Sector Pension Investment Board (PSP Investments) and IFRS, to protect itself from MIAL’s takeover bid for part of the Adani Group. But all this funding did not materialize. At the time, GVK had said that this financing was “primarily to remove the debt obligations of its holding companies in a significant way and to finance the purchase of additional shares in MIAL by GVK Airport Holdings Ltd (GVKAHL) from Bidvest and ACSA in accordance with the right of first offer already exercised by GVKAHL “.
MIAL is a joint venture of GVK and South African investors Bidvest and ACSA. GVK Airport Developers owns 50.5% of MIAL, AAI 26%, Bidvest 13.5% and ACSA 10%. Now, the Adani Group owns 74% of MIAL, with the remainder 26% with AAI.
GVK Group Founder and Chairman GVK Reddy Monday said: “The aviation industry has been severely affected by COVID-19, delaying it for many years and has impacted the finances of Mumbai International Airport Limited. Therefore, it was important that we attract a financially sound investor in the shortest time possible to improve MIAL’s financial position as well as to help achieve the financial closure of the Navi Mumbai International Airport project, which is a project of national importance. . It is in these circumstances that we agree to cooperate with Adani to achieve these two goals. In addition, when the transaction is consummated, which is subject to the usual approvals, we would be reducing a significant part of the obligations with our lenders, which is of great importance for the group ”.
In video: Adani Group will acquire 74% stake in Mumbai airport from GVK Group
Adani Group will also “achieve financial closure of the Navi Mumbai International Airport project as soon as possible to begin construction.” The Adani Group had emerged as the highest bidder to operate six AAI airports – Jaipur, Guwahati, Thiruvananthapuram, Ahmedabad, Lucknow and Mangaluru – in PPP form for 50 years. the Kerala The government opposes the handover of T’puram airport to Adani. With the second busiest airport in India, CSMIA Mumbai, and the upcoming Navi Mumbai also in its portfolio, Adani Group emerges as one of the largest private airport developers in India.
In an EEB presentation, Adani Enterprises Ltd said on Monday: “Adani Airport Holdings Limited (AAHL), the Adani Group’s flagship holding for its airports business (and a subsidiary of Adani Enterprises Limited) has signed an agreement to acquire the debt of GVK Airport Developers Limited (GVKADL). GVK ADL is the holding company through which GVK Group has a 50.50% stake in MIAL, which in turn owns 74% of the share capital in Navi Mumbai International Airport Limited (NMIAL). Under the agreement, AAHL will acquire GVKADL’s debt from its airport lenders. ”
“The GVK Group and AAHL have agreed that AAHL will offer a stand-still to GVK, in addition to the release of the guarantee granted by GVK Power and Infrastructure Limited in respect of the debt acquired by it. The Adani Group will also take steps to complete the acquisition of a 23.5% shareholding of ACSA and Bidvest in MIAL for which it has obtained CCI approval. Following the acquisition of GVK ADL debt, Adani Group will take the necessary steps to obtain the necessary regulatory and customary approvals, as necessary, to acquire a majority stake in MIAL. AAHL intends to infuse funds in MIAL to ensure MIAL receives much needed liquidity and also achieves financial closure of Navi Mumbai International Airport in order to begin construction, ”said the Adani Group regulatory filing.
In a statement, the GVK Group said that the other terms of the GVK-Adani deal include: “Adani’s acquisition of debt from various GVK lenders, including a consortium led by Goldman Sachs and HDFC; release GVK from various obligations, securities and corporate guarantees granted with respect to the debt to be acquired by Adani and Adani’s ability to convert the acquired debt into equity of GVK Airport Developers Ltd (GVKADL) on mutually agreed terms, subject to the obtaining the necessary regulatory approvals. ”
“Separately, GVK has notified the Abu Dhabi Investment Authority (ADIA), the National Fund for Investment and Infrastructure (IFRS) and the PSP, that the transaction documents are rescinded as they are no longer effective or enforceable. . The reason for this decision was a) the terms of the transaction contemplated in the transaction documents were not enforceable and b) the alternative proposals discussed would not provide a resolution to the lenders by the end of August, which was a requirement of our lenders. “The GVK Group said in a statement.
Last October, GVK Group had reached an agreement to secure Rs 7,614 million financing from ADIA, the Public Sector Pension Investment Board (PSP Investments) and IFRS, to protect itself from MIAL’s takeover bid for part of the Adani Group. But all this funding did not materialize. At the time, GVK had said that this financing was “primarily to remove the debt obligations of its holding companies in a significant way and to finance the purchase of additional shares in MIAL by GVK Airport Holdings Ltd (GVKAHL) from Bidvest and ACSA in accordance with the right of first offer already exercised by GVKAHL “.
MIAL is a joint venture of GVK and South African investors Bidvest and ACSA. GVK Airport Developers owns 50.5% of MIAL, AAI 26%, Bidvest 13.5% and ACSA 10%. Now, the Adani Group owns 74% of MIAL, with the remainder 26% with AAI.
GVK Group Founder and Chairman GVK Reddy Monday said: “The aviation industry has been severely affected by COVID-19, delaying it for many years and has impacted the finances of Mumbai International Airport Limited. Therefore, it was important that we attract a financially sound investor in the shortest time possible to improve MIAL’s financial position as well as to help achieve the financial closure of the Navi Mumbai International Airport project, which is a project of national importance. . It is in these circumstances that we agree to cooperate with Adani to achieve these two goals. In addition, when the transaction is consummated, which is subject to the usual approvals, we would be reducing a significant part of the obligations with our lenders, which is of great importance for the group ”.
In video: Adani Group will acquire 74% stake in Mumbai airport from GVK Group
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