GVK group, the operator of Mumbai International airport, raised its stake to a safe 74% by buying out the last tranche of 10% from its south African partner ACSA-Airport Company South Africa. with this, GVK’s stake in MIAL rose to impregnable 74%, thus leaving no room for the potential ambitions of Adani group, which toyed with the idea of buying out both Bidvest and ACSA stake at a steep valuation to gain foothold in the premier Airport of the country.
- MIAL now has two partners, GVK with 74% and AAI with 26% equity holdings.
- With potential hostile partner’s threat receding, GVK now can hawk a portion of its stake to a foreign strategic partner to raise funds for the new Airport at Navi Mumbai.
- GVK can now have a more leverage in the board decisions that will pave the roll out of services in a quick span of time.
- GVK holds more percentage of equity among all the private airport owners in the country.
Despite in a tight situation for the funds, GVK managed to pay off nearly 2200 Crores or 300 Million US$ for the 23.5% stake in a quick span of 30 days.With 74% stake in this prestigious airport, GVK emerged as the holder of Largest stake of 74% surpassing its peers at Delhi, Hyderabad, Bangalore and Cochin airports, where the largest stake holder holds not more than 68% of the total equity.