GVK Airport, a subsidiary of GVK Power and Infrastructure, has secured approval from the Competition Commission of India (CCI) to acquire an additional 10% stake in Mumbai International Airport (MIAL).
As part of the agreement, which was initially announced in March this year, GVK Airport will buy ACSA Global’s 10% stake for approximately $134.01m (Rs9.24bn).
MIAL manages Chhatrapati Shivaji International Airport in Mumbai, the second busiest airport in the country.
MIAL is a joint venture formed by GVK, the Airports Authority of India (AAI), Bidvest and ACSA.
GVK Airport Developers holds 50.5%, Bidvest owns 13.5%, and ACSA holds a 10% stake. The remaining 26% stake is owned by the Airports Authority of India (AAI).
Following this deal, GVK Group’s shareholding in MIAL will increase to 74%.
The decision to acquire shares from ACSA forms part of GVK Airport’s strategy to keep Adani Group away from Mumbai Airport. Adani offered to acquire a 23.5% stake in Mumbai Airport in February this year.
Adani Group’s offer to the two the South African firms, ACSA and Bidvest, valued the Mumbai International Airport at around $1.34bn (Rs95bn).
Under the right of first refusal (RoFR) clause, the companies asked existing shareholder GVK to match the offer until the end of February.
However, GVK Power’s plan to buy Bid Services Division’s 13.5% stake in MIAL did not materialise as the company secured approval from the Delhi High Court to sell its stake to a third party.
In its order, the court said that GVK Power had failed to show any ‘readiness and willingness’ to buy Bidvest’s stake, despite it having the first right to buy the shares.
Early this year, Adani Group emerged as the highest bidder to manage, operate and develop facilities at Ahmedabad, Jaipur, Mangaluru, Trivandrum and Lucknow airports.