GVK Airport Holdings on Thursday told the Delhi High Court how it plans to buy South African company Bidvest Group's stake in Mumbai International Airport Limited (MIAL). Details of where the money will come from and how it will be given to Bidvest were submitted in a sealed cover to the court. Further proceedings in the case will be done in-chamber at GVK's request, the court said.
Bidvest had sought that the High Court direct GVK Airport Holdings to prove that it had Rs 1,300 crore to buy out its stake. The court is hearing a plea by GVK Airport Holdings seeking injunction against Bidvest selling its stake to a third party.
In February this year, the GVK arm had exercised its right of first refusal (ROFR) to buy out 13.5 per cent of the total paid-up share capital of MIAL.
GVK Airport Holdings’ stake would rise to 74 per cent--from the present 50.5 per cent--after it completes the acquisition of Bidvest's stake.
GVK will require Rs 2,171.4 crore to pay for 23.5 per cent stake as it was earlier agreed to it would acquire the shares from Bidvest as well as ACSA Global at Rs 77 apiece.
Bidvest now contends that it could not wait until September 30, which GVK wants as the deadline for the transaction. GVK, on the other hand, sought time until September-end, citing legal and regulatory hurdles that could arise during the time it looks for money.
MIAL is a joint venture of GVK and South African investors Bidvest and ACSA. GVK Airport Developers owns 50.5 per cent of MIAL, while the Airports Authority of India owns 26 per cent. Bidvest and ACSA hold 13.5 per cent and 10 per cent stakes, respectively.