GVK moves court to stop Budvest from selling stake in Mumbai Airport

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Published: April 3, 2019 7:16:45 AM

Though GVKAHL is confident about acquiring ACSA’s stake, Bidvest has been in talks with infrastructure major Adani Group for sale. GVK had urged the court to prevent Bidvest from creating third-party rights on its 162 million equity shares.

GVKAHL, a subsidiary of the GVK group, has claimed it has the right of first refusal (Rofr) to purchase shares under the shareholders agreement signed in 2006.

GVK Airport Holdings on Tuesday moved the Delhi High Court seeking to stall its partner Bidvest group’s attempt to sell off 13.5% stake in Mumbai International Airport (MIAL).

GVKAHL, a subsidiary of the GVK group, has claimed it has the right of first refusal (Rofr) to purchase shares under the shareholders agreement signed in 2006.

Bid Services Division (Mauritius) (Bidvest) will maintain status quo in terms of sale of shares as the high court will further hear the case on April 8, sources told FE.

GVK holds 50.5% stake in MIAL and had proposed to increase its share in Mumbai airport to 74%. It initiated a process to acquire Bid Services Division (Mauritius)’s 13.5% in MIAL during February and 10% stake of Airports Company South Africa (ACSA) on March 22 under Rofr in terms of the shareholders agreement. GVK has alleged that Bidvest intends to defeat GVK’s preferential rights to purchase the shares and sell them to a third party.
Though GVKAHL is confident about acquiring ACSA’s stake, Bidvest has been in talks with infrastructure major Adani Group for sale. GVK had urged the court to prevent Bidvest from creating third-party rights on its 162 million equity shares.

MIAL is joint venture between GVK, Bidvest, ACSA and state-owned Airports Authority of India (AAI).
According to sources, Bidvest is in talks with the Adani Group for stake sale, which emerged as the highest bidder to control six non-metro airports owned by AAI in February.

“The court suggested that the parties could arrive at a mutual settlement proposal. But that did not happen. An oral assurance was given (by Bidvest) that no offer for sale of the shares will be made to any party including the AAI,” a person with direct knowledge about the matter told FE.

GVK requires around `12,000 crore to buy Bidvest’s stake in the Mumbai airport.

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