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Adani arm eyes controlling interest in Mumbai Airport

FILE PHOTO: Passengers wearing protective face masks wait in a queue to enter Chhatrapati Shivaji International Airport, after the government allowed domestic flight services to resume, during an extended nationwide lockdown to slow the spread of the coronavirus disease (COVID-19), in Mumbai, India, May 25, 2020. REUTERS/Francis Mascarenhas/File photo

BENGALURU (Reuters) - Adani Enterprises said on Monday it would take a controlling stake in Mumbai International Airport Ltd (MIAL) through a deal in which Adani Airport Holdings Limited will acquire the debt of GVK Airport Developers Limited (GVK ADL).

GVK ADL is the holding company through which GVK Group holds a 50.50% equity stake in MIAL, which in turns holds a 74% stake in Navi Mumbai International Airport Limited (NMIAL), Adani Enterprises said here in a filing with exchanges.

Adani Group will also take steps to complete the acquisition of a 23.5% equity stake from the Airports Company of South Africa and Bidvest Group in MIAL for which it has obtained approval from India’s competition regulator, ADEL said.

“Adani Airport Holdings intends to infuse funds into MIAL to ensure it receives much needed liquidity and also achieves financial closure of Navi Mumbai International Airport to be able to commence construction,” Adani Enterprises said.

Shares of Adani Enterprises were down 4% in midday trading.

Reporting by Nallur Sethuraman in Bengaluru; Editing by Amy Caren Daniel

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