Adani completed a 23.5% stake purchase at Mumbai airport

The group has already taken over six Airport Authority of India

Adani Group has completed the purchase of 23.5 percent stake in Mumbai airport (MIAL) at two South African companies, marking the first step in gaining more control over the country's busiest airport. In a stock exchange announcement on Saturday, Adani Enterprises said its airline had received a 13.5 per cent stake in Bidvest and a 10 per cent stake in Airport Company of South Africa, valued at $ 1,685 million.

The agreement marks the culmination of two Adani Group's two attempts to acquire the pole and control of Mumbai airport. Also noted for the departure of foreign investors from the airport.The group has already taken over six Airport Authority of India (AAI) airports under a private trading scheme. The six airports below include Ahmedabad, Lucknow, Mangaluru, Jaipur, Thiruvananthapuram and Guhati.  Last August, it had signed an agreement with GVK Group to secure 50.5 per cent of the stock at Mumbai airport. The agreement included the acquisition of 23.5 percent of the shares held by two South African companies.

As part of the agreement, Adani Group will take out Rs 2,500 in debt owed to GVK Airport Developers, the holding company of MIAL. Adani will receive a control share on MIAL when the debt is converted into cash. Last month, AAI approved Adani Group's acquisition of GVK Group's 50.5 per cent stake in MIAL. A few more government permits are pending.In March 2019, Bidvest had signed an agreement to sell its stake to Adani Group for $ 1,248. GVK Group exercised the 'initial refusal' right but was unable to terminate the agreement. The adoption battle then escalated in the courts, as GVK Group tried to block the entry of Adani Group.

In October 2019, GVK had announced the sale of 79 per cent stake in its airline holding a foreign investment clutch for Rs 7 614 crore, but the deal fell through. The group hoped to use the proceeds of retirement debt and to buy South African investors from MIAL. Eventually, under pressure from lenders, GVK agreed to sell its stake on MIAL to the Adani group. The CBI's investigation into the GVK Group's money laundering has made it extremely difficult to raise money.