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GVK deposits Rs 1,248 crore in escrow account to acquire stake in Mumbai International Airport

GVKAHL has claimed the right of first refusal (RoFR) over Bidvest’s share. Bidvest and AAI have held that the time-period for GVK to exercise the RoFR has expired.

GVK deposits Rs 1,248 crore in escrow account to acquire stake in Mumbai International Airport
While GVK owns 50.5% in MIAL, Airports Company South Africa (ACSA) holds 10% and 26% rests with Airports Authority of India (AAI).

GVK group on Thursday deposited Rs 1,248 crore in an escrow account for buying out Bidvest’s share in Mumbai International Airport (MIAL), people aware about the development said.

The arbitration tribunal had directed GVK Airports Holding (GVKAHL) to deposit the money required to purchase 13.5% stake held by South African firm Bidvest.

“This would mean that injunction against Bidvest from selling its share in MIAL will continue till the arbitration panel decides on the stake sale dispute,” sources said.

The next round of hearing at the arbitration tribunal is expected in the last week of November.

GVKAHL has claimed the right of first refusal (RoFR) over Bidvest’s share. Bidvest and AAI have held that the time-period for GVK to exercise the RoFR has expired.

While GVK owns 50.5% in MIAL, Airports Company South Africa (ACSA) holds 10% and 26% rests with Airports Authority of India (AAI).

The Adani group is also staking claim on the 13.5% share of Bidvest, and is pursuing a case against MIAL shareholders at the Bombay High Court.

On October 27, GVK group had announced that it will raise Rs 7,614 crore by selling 79.1% stake in its airport business to three investors. GVKPIL has signed definitive agreements with Abu Dhabi Investment Authority (ADIA), Canada’s Public Sector Pension Investment Board, (PSP Investments), and the government-backed National Investment & Infrastructure Fund (NIIF).

GVKAHL had initiated a process to acquire Bidvest’s share in MIAL in February and 10% stake of ACSA on March 22 under right of first refusal (RoFR) in terms of the shareholders agreement.
The Adani group had also entered into a share purchase agreement with Bidvest to buy its share reportedly at a higher price.

Earlier this year, the Delhi High Court had dismissed GVKAHL’s petition preventing Bidvest from selling its stake to a third party, forcing the company to initiate arbitration proceedings.

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First published on: 01-11-2019 at 11:30:09 am