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Adani Airport Holdings to acquire debt of GVK Airport Developers

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Capital Market
Last Updated : Aug 31 2020 | 11:31 AM IST

To acquire controlling interest in Mumbai Airport

Adani Enterprises announced that Adani Airport Holdings (AAHL), the flagship holding company of Adani Group for its airports business (and a subsidiary of Adani Enterprises) has entered into an agreement to acquire the debt of GVK Airport Developers (GVK ADL).

GVK ADL is the holding company through which GVK Group holds 50.50% equity stake in Mumbai International Airport (MIA), which in turns holds 74% equity stake in Navi Mumbai International Airport (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 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 CCI approval. 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.

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.

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First Published: Aug 31 2020 | 11:04 AM IST

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