Adani Group has completed the acquisition of 23.5 per cent stake in Mumbai International Airport (MIAL) from two South African entities, marking the exit of foreign investors from the airport, reported Moneycontrol.in.
Adani Enterprises, on Saturday, February 5, said that its airport's division had acquired 13.5 per cent stake of Bidvest and 10 per cent stake of Airport Company of South Africa, for an amount worth Rs 1,685 crore.
The group has already taken over six Airport Authority of India (AAI) airports under the privatisation exercise. The latest deal comes as part of Adani Group's two-year plan to acquire a stake of the Mumbai airport.
Last August, the group had signed an agreement with GVK Group to get its 50.5 per cent stake in Mumbai airport. The deal also included the acquisition of 23.5 per cent stake held by the two South African companies.
As a part of the deal, Adani Group will take over Rs 2,500 crore of debt owed by GVK Airport Developers and will get controlling stake in the international airport upon turning of debt into equity.
Last month, the AAI had agreed to Adani Group getting GVK Group's 50.5 per cent stake in MIAL.
In March 2019, Bidvest had signed an agreement to sell its stake to Adani Group for Rs 1,248 crore. GVK Group exercised the 'right of first refusal', however, it was unable to close the deal.
The acquisition fight then moved to courts as GVK Group tried to prevent Adani Group's entry.
In October 2019, GVK had announced the sale of 79 per cent stake in its airport's holding company to some foreign investors for Rs 7,614 crore. The deal, however, didn't conclude.
Later, GVK agreed to sell its stake in MIAL to the Adani Group.
"We see our airport portfolio as a critical level to help converge tier-I cities with tier-II and tier-III ones, in a hub and spoke model," Adani Group Chairman Gautam Adani had said last year.
"The addition of MIAL and Navi Mumbai to our existing portfolio of six airports provides us a transformational platform that will help shape and create strategic adjacencies for our other B2B businesses," Adani had said.