The Adani Group has completed the acquisition of 23.5 per cent of Mumbai International Airport Limited (MIAL) from ACSA Global Limited (ACSA) and Bid Services Division (Mauritius) Limited (Bidvest).

“AAHL has completed the acquisition of 23.5 per cent equity stake in MIAL. This acquisition forms part of the transaction pursuant to which AAHL proposes to acquire controlling interest in MIAL as specified in our intimation dated August 31, 2020,” the company said in a statement to the stock exchanges.

According to sources, under the proposed deal, the Adani Group will acquire 162 million shares at ₹56.25 apiece from Bidvest, aggregating to ₹911.25 crore. Adani will also buy over 120 million shares from Airports Company South Africa (ACSA) at ₹56.25 apiece, aggregating to ₹675 crore. This means it will acquire Bidvest’s 13.5 per cent stake and ACSA 10 per cent stake in MIAL.

In 2019, Bidvest said it was selling its stake to GVK Group for ₹1,250 crore. Per the right of first refusal agreement, it had also offered its stake to other stakeholders of MIAL. GVK had offered to buy Bidvest’s stake, but failed to arrange for the funds within the 30-day period.

In order to get more time, GVK had moved the Delhi High Court, which directed the matter to an arbitration panel. The arbitration tribunal, in January 2020, ruled against Bidvest on the airport stake sale. Both Bidvest and ACSA said GVK wanted to buy the stake but was neither giving them the money nor depositing it in an escrow account.

BusinessLine had reported that Adani will also take over debt of GVK Airport Developers Ltd (GVKAKL) amounting to ₹2,507.95 crore which, on full conversion, will be 95 per cent of the paid-up capital of GVKADL.

Under the proposed terms of cooperation, Adani will acquire the debt from various lenders of GVK including a Goldman Sachs-led consortium and HDFC. Subsequently, it will convert the debt into equity totalling 50.5 per cent in MIAL.