Adani Group Plans to Buy 74% of Stake in Mumbai Airport

Mumbai Airport Terminus

Recently Adani Group and GVK Group have been in News Headlines, according to which, Adani group has agreed to acquire a total of 74 percent stakes from GVK and two other companies to control the Mumbai International Airport.

Mumbai Airport also called the Chhatrapati Shivaji Maharaj International Airport, in Mumbai, the capital of Maharashtra state, is one of the busiest airports in India.

There are two Terminals in this Airport one of them is an International Airport terminal and the other one is a Domestic Airport terminal. These two Airport terminals are at a distance of about 4 kilometers apart. Airport Taxi Services is used to transport Air Passengers between these two Terminals.

Terminal-one is for domestic flights and Terminal-two is for both International and Domestic Flights. These two Airports Terminals share the same Runway and Airside facilities but are separated physically and require Airport Taxi services to travel between the two Terminals.

Adani Group, headquartered in Ahmedabad, Gujarat, is a Multinational-Indian Conglomerate Company founded by Gautam Adani in the year 1988.

Adani Group of Companies has around 16000 employees and the GVK group, headquartered in Hyderabad, and founded by Gunupati Venkata Krishna Reddy (GVK Reddy), in 1992, is an Indian group of companies, which has made a great impression in many sectors including Energy, Hospitality, Airport, Resources, Transportation, and Life sciences. This Group has about 50000 employees.

Purchase Deal

As per the deal agreement the Adani Group will attain the control of the Mumbai Airport from GVK group, GVK group has a 50.5 percent equity in Mumbai International Airport and also the Adani group is about to buy an additional 23.5 percent equity stake from the Airport Company of South Africa(10 percent) and South African Bidvest (13.5 percent).

In which it has already obtained permission from the Competition Commission of India and after completion of the financial deal the Adani group will soon have a total of about 74 percent stake in the Airport and the residual 26 percent stake will be owned by the Airport Authority of India.

The Adani Group also has been one of the highest bidders for operating six other Airports in India which includes Jaipur, Guwahati, Thiruvananthapuram, and Mangaluru Airport and hence Adani Group appears to be one of the largest private Airport developers in this country.

GVK Group’s Chairman, GVK Reddy mentions that the Aviation Industry has been affected adversely by the Covid-19 situation, and to recover the financial Position of the Mumbai Airport the GVK Group has decided to team up with Adani Group to reduce a remarkable portion of debt given by lenders.