scorecardresearch

GVK moves HC to restrain ACSA from selling stake in Mumbai International Airport to Adani

GVK group is already engaged in a legal tussle over the acquisition of Bidvest’s stake.

GVK moves HC to restrain ACSA from selling stake in Mumbai International Airport to Adani
Adani group has been vying to pick up Bidvest and ACSA shares in the second busiest airport of the country.

The GVK group on Tuesday moved the Delhi High Court urging for directions to restrain one of its partner, Airports Company of South Africa (ACSA), from selling its stake in Mumbai’s Chhatrapati Shivaji International airport to the Adani Group.

A Delhi HC bench headed by justice Jyoti Singh has asked ACSA, which holds a 10% stake in Mumbai International Airport (MIAL), to maintain status quo regarding the shareholding till January 14, 2020, the next date of hearing.

GVK Airport Holding, the airport holding company of the GVK group, has alleged breach of the shareholders agreement (SHA) by ACSA by entering into a contract with the Adani Group for the stake sale.

“There is a material breach of the shareholders’ agreement by ACSA and the company is entitled to transfer its shares to GVK Airport Holding at a mutually agreed price,” advocate Kartik Nayar, who is representing the GVK group, said.

GVK served a notice for breach of the SHA to ACSA on December 20.

According to section 7.2 (c) (ii) of the SHA, “the non-defaulting private participants shall have the right to acquire the entire shareholding of the defaulting private participant in the JVC; and the defaulting private participant hereby undertakes and agrees to so transfer, its entire shareholding in the JVC to the non-defaulting private participants at such price as agreed/to be agreed between the private participants”.

While the GVK group has a 50.5% ownership in MIAL, the Airports Authority of India (AAI) owns 26% and 13.5% stake is held by Bid Services Division.

GVK group is already engaged in a legal tussle over the acquisition of Bidvest’s stake. The company has claimed the right of first refusal (RoFR) to buy out Bidvest shares in MIAL. An arbitration tribunal is likely to pass an order in the coming weeks.

Adani group has been vying to pick up Bidvest and ACSA shares in the second busiest airport of the country.

GVK group had initiated a process to acquire Bidvest’s share in MIAL during February and a 10% stake of ACSA on March 22 under RoFR in terms of the SHA. GVK’s offer to Bidvest was valued at Rs 1,248 crore while it was ready to shell out Rs 924 crore for ACSA’s holding.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

First published on: 26-12-2019 at 06:14:16 pm