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GVK subsidiary to increase stake from 50.5% to 64% in MIAL

Besides being the Mumbai Airport operator, MIAL was also mandated to develop the green-field Navi Mumbai Airport

Aneesh Phadnis & Dasarath Reddy  |  Hyderabad 

Mumbai Airport

The 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 (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 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 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 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.

ALSO READ: GVK group wants AAI aid to block Adani's bid for Mumbai airport

The 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 While the 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

First Published: Sat, February 23 2019. 21:18 IST