Adani Enterprises Ltd, through its subsidiary Adani Airport Holdings Limited (AAHL), has entered into an agreement to acquire the debt of GVK Airport Developers Limited (GVKADL), a subsidiary of GVK Power and Infrastructure Ltd, both companies informed stock exchanges. When this transaction is complete, the Adani group will gain control of the second busiest airport in the country in Mumbai.
GVKADL is the holding company through which the GVK group holds 50.50% equity stake in Mumbai International Airport Limited (MIAL), which, in turn, holds 74% equity stake in the greenfield Navi Mumbai International Airport Limited (NMIAL).
According to the agreement, AAHL will acquire the debt of GVKADL from its airport lenders. The GVK Group and AAHL have agreed that AAHL will also offer a stand-still to GVK to release of the guarantee given by GVK Power and Infrastructure Limited with respect to the debt acquired by it.
GVK said the agreement with Adani included the acquisition of debt by Adani from various GVK lenders, including a Goldman Sachs-led consortium and HDFC; releasing GVK of various obligations, securities and corporate guarantees given in respect of debt to be acquired by Adani; Adani converting the acquired debt to equity of GVKADL on mutually agreed terms; and the infusion of funds by Adani into MIAL to provide liquidity support.
An agreement signed in October 2019, where Abu Dhabi Investment Authority, Canada’s Public Sector Pension Investment Board, and state-backed National Investment and Infrastructure Fund sought to buy a 79.1% stake in GVK Airport Holdings for ₹7,600 crore, stands terminated.