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Ad Group said on Monday it has entered into an agreement to acquire the debt of GVK Airport Developers Ltd (GVK ADL), paving the way to acquire 74 per cent stake in Mumbai International Airport Ltd (MIAL) that operates India's second-largest airport in Mumbai.GVK ADL is the holding company through which GVK Group holds 50.5 per cent equity stake in MIAL, which in turns holds 74 per cent equity stake in Navi Mumbai International Airport Ltd.According to the agreement, Ad Airport Holdings Ltd (AAHL) will acquire the debt of GVK ADL from its airport lenders."The GVK Group and AAHL have agreed that AAHL will offer a stand-still to GVK, in addition, to release of the guarantee given by GVK Power and Infrastructure Ltd with respect to the debt acquired by it," said AAHL's parent company Ad Enterprises in regulatory filings at stock exchanges."The Ad Group will also take steps to complete the acquisition of a 23.5 per cent equity stake from ACSA and Bidvest in MIAL for which it has obtained approval from the Competition Commission of India."Upon the acquisition of the debt of GVK ADL, Ad Group will take steps to obtain necessary customary and regulatory approvals to acquire a controlling interest in MIAL. Reports said Ad will hold 74 per cent stake in MIAL."AAHL intends to infuse funds into MIAL to ensure that MIAL receives much-needed liquidity and also achieves financial closure of Navi Mumbai International Airport to be able to commence construction."GVK Power and Infrastructure Ltd said the company along with its subsidiaries GVK ADL and GVK Airport Holdings Ltd have agreed to cooperate with AAHL for its airports business.The terms of cooperation include acquisition of debt by Ad from various GVK lenders including a Goldman Sachs led consortium and HDFC. The move will release GVK of various obligations, securities and corporate guarantees given in respect of debt to be acquired by Ad."The aviation industry has been severely impacted by COVID-19, setting it back by many years and has impacted the financials of MIAL," said GVK Founder and Chairman G V K Reddy."It was therefore important that we bring in a financially strong investor in the shortest possible time to improve the financial position of MIAL as well as to help achieve financial closure of Navi Mumbai International Airport project which is a project of national importance," he said."It is under these circumstances that we agreed to cooperate with Ad so as to achieve these twin objectives. Further, when the transaction is consummated which is subject to customary approvals, we will be reducing a significant portion of liabilities to our lenders which is of utmost importance to the group."Separately, GVK notified the Abu Dhabi Investment Authority, National Investment and Infrastructure Fund and PSP that the transaction documents stand terminated as it is no longer effective and implementable.GVK said the terms of transaction envisaged in the transaction documents were not implementable and the alternative proposals discussed will not provide a resolution to the lenders of ADL by August-end which was a requirement of our lenders.( With inputs from ANI )Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

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Business :Adani Airports to acquire controlling interest in Mumbai Airport

Adani Group said on Monday it has entered into an agreement to acquire the debt of GVK Airport Developers Ltd (GVK ADL), paving the way to acquire 74 per cent stake in Mumbai International Airport Ltd (MIAL) that operates India's second-largest airpo ...