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Adani Ports, GVK Power shares jump 4% on AAHL's plans to acquire GVK Airport's debt

Adani Group will also take steps to complete the acquisition of a 23.5 percent equity stake from ACSA and Bidvest in MIAL for which it has obtained CCI approval

September 01, 2020 / 03:48 PM IST

Adani Ports and Special Economic Zone share price jumped over 4 percent intraday on August 31 after the company said Adani Airport Holdings (AAHL) will acquire a controlling interest in Mumbai International Airport (MIAL) and will also acquire the debt of GVK Airport Developers.

"The Adani Group will also take steps to complete the acquisition of a 23.5 percent equity stake from ACSA and Bidvest in MIAL for which it has obtained CCI approval," Adani Enterprises said in a BSE statement.

"AAHL intends to infuse funds into MIAL to ensure that MIAL receives the much-needed liquidity and also achieves financial closure of Navi Mumbai International Airport to be able to commence construction," Adani Enterprises said.

Also Read: Adani Airports to acquire controlling interest in Mumbai airport; will acquire GVK Airport's debt

The stock price of Adani Ports was trading at Rs 375.85, up Rs 16.25, or 4.52 percent. It has touched an intraday high of Rs 378.45 and an intraday low of Rs 362.

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The share price of GVK Power & Infrastructure also jumped almost 5 percent in the morning session after the two companies reached an agreement wherein Adani Airport will acquire the debt of GVK ADL from its airport lenders.

GVK Airport Developers, a subsidiary of GVK Group, owns a 50.5 percent stake in MIAL. Bidvest and Airports Company of South Africa (ACSA) own 13.5 percent and 10 percent of MIAL, respectively.

Separately, GVK said it has terminated its agreement with Abu Dhabi Investment Authority, National Investment and Infrastructure Fund and PSP for its airports business.

"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 Limited. 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 the Navi Mumbai International Airport project, which is a project of national importance. It is under these circumstances that we agreed to cooperate with Adani so as to achieve these twin objectives," GVK Reddy, Founder & Chairman, GVK said in a statement.

Shares of GVK Power & Infrastructure was quoting at Rs 3.43, up Rs 0.16, or 4.89 percent. It has touched an intraday high of Rs 3.43 and an intraday low of Rs 3.11. There were pending buy orders of 155,534 shares, with no sellers available.

It was trading with volumes of 6,139,052 shares, compared to its five day average of 2,363,945 shares, an increase of 159.70 percent.
Sandip Das
first published: Aug 31, 2020 10:19 am
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