India’s Adani group to acquire controlling stake in Mumbai airport

India’s diversified conglomerate Adani group has signed a deal to acquire controlling stake in Mumbai airport, the group’s company said in a filing with the Bombay Stock Exchange Monday.

As a step towards acquiring a controlling stake, Adani Airport Holdings (AAH), the flag ship holding company of Adani group has entered into an agreement to acquire the debt of GVK Airport Developers Limited (GVKADL), which holds 50.5-percent stake in Mumbai International Airport Ltd (MIAL) and 74-percent stake in the proposed Navi Mumbai airport.

“Upon the acquisition of the debt of GVKADL, Adani Group will take steps to obtain necessary customary and regulatory approvals, as may be required to acquire controlling interest in MIAL,” the filing said.

The amount of debt by GVK could not be ascertained.

AAH intends to infuse funds into MIAL to ensure that Mumbai airport receives much needed liquidity and also achieves financial closure of Navi Mumbai International Airport to be able to commence construction, the filing said.

India had recently approved the transfer of six airports in the country’s tier II cities on 50-year leases to Adani group after the later won the rights to operate, maintain and develop the airports in a public private partnership mode.