Emerging as the country’s biggest private airport operator, Adani Group on Monday stated that said it will acquire GVK’s stake in Mumbai International airport. Adani Airport Holdings Ltd., also a subsidiary of Adani Enterprises Ltd., has signed an agreement to acquire the debt of GVK Airport Developers Ltd with which the cumulative shareholding rises to 74 per cent.
According to an official statement released by Adani Groups on Monday, the terms of the agreement include the acquisition of debt by Adani from various GVK lenders including a Goldman Sachs-led consortium and HDFC, releasing GVK of various obligations, securities and Corporate Guarantees given in respect of debt to be acquired by Adani.
Reacting to the same, GVK Reddy, Founder and Chairman, GVK said, “The aviation industry has been severely impacted by COVID-19, setting it back by many years and has impacted the financials of Mumbai International Airport Ltd.
“When the transaction is consummated, which is subject to customary approvals, we would be reducing a significant portion of liabilities to our lenders, which is of utmost importance to the group,” he added.
Separately, GVK has notified the Abu Dhabi Investment Authority, National Investment and Infrastructure Fund and PSP, collectively that the Transaction Documents stand terminated, as it is no longer effective and implementable.