Adani Airport Holdings will acquire the debt of GVK Airport Developers, the holding company of GVK Power & Infrastructure, according to an exchange filing Monday. Adani will also buy the 23.5 percent stake held in Mumbai International Airport by Airports Co. South Africa and Bidvest Group, and then work to acquire control.
Still, the airport in Mumbai, India’s second busiest with 46 million annual passengers in the 12 months through March, has been a prized possession for GVK and it’s fought hard to retain control, even attempting to buy out minority partners to ward off Adani. However high debt levels -- GVK’s airports business had obligations of $781 million as of March 2019 -- and a string of government investigations into financial irregularities mean the group has lost much of its bargaining power.
“The aviation industry has been severely impacted by Covid-19, setting it back by many years and has impacted the financials of Mumbai International Airport,” GVK Chairman GVK Reddy said in a statement. “It was therefore important that we bring in a financially strong investor in the shortest possible time.”
Gautam Adani is India’s fourth-richest man with a net worth of about $16.3 billion , according to the Bloomberg Billionaires Index. A pugnacious dealmaker, his companies maintain a focus on “nation building through infrastructure,” he told Bloomberg News in a rare interview last year.
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