The GVK group has exercised the right of first refusal to acquire an additional 13.5 per cent stake in Mumbai airport and stave off the Adani group’s entry into the project. The Hyderabad-based group informed the exchanges on Saturday that it would acquire over 162 million shares in Mumbai International Airport (MIAL), held by South African partner Bidvest, for Rs 77 a share.
The Rs 1,247-crore deal for Bidvest’s 13.5 per cent stake will increase GVK’s share in MIAL to 64 per cent. It holds the right of first refusal in case any of its partners seeks to exit the JV. While sources had indicated that the GVK group might seek the Airport Authority of India's help to block the Adani group's bid, it has decided to go ahead and buy Bidvest’s stake to consolidate its ownership.
“Upon completion of this acquisition, the equity share holding of the GVK group will increase to 64 per cent from the existing 50.5 per cent of the total paid-up share capital of MIAL,” the company stated in its filing.
The Adani group has proposed the acquisition of Bidvest’s 13.5 per cent stake and Airport Company South Africa's (ACSA's) 10 per cent stake in MIAL. While the Adani group responded to Bidvest's formal offer, it is said to have made an offer on its own to acquire ACSA's stake. The GVK group's exchange notification is silent on its strategy with respect to the 10 per cent stake being put for sale by ACSA.
The group also did not share how it proposes to fund the acquisition of Bidvest's 13.5 per cent stake in MIAL.