NEW DELHI :
The GVK-Bidvest case took a new turn on Thursday as GVK Airport Holdings came forward with a sealed envelope citing avenues through which it has raised for the ₹1,250 crores needed to acquire the overseas investor's stake in Mumbai International Airport Ltd (MIAL).
During the previous hearing (9 May) at Delhi High Court, South Africa-based Bidvest Group asked the court to direct GVK Airport Holdings to prove that it has the ₹1,250 crores needed to acquire its stake.
“Entire deal is structured in this yellow envelope," Said Kartik Nayar, counsel for GVK Airport Holdings.
Judge Sanjeev Narula then said that there shall be chamber hearing on this. “Just all three of you look at the document. We will have a chamber hearing on this," he said. The matter is slated to be heard Friday.
Bidvest was represented by senior advocate Amit Sibal along with Saurabh Kirpal.
Earlier this year, GVK had filed an injunction at the Delhi High Court to block South African partner Bidvest from selling its stake in Mumbai International Airport Ltd (MIAL) to a third party. MIAL runs the Chhatrapati Shivaji International Airport in Mumbai, one of the busiest in India, as a special purpose joint venture company in which GVK initially owned a 50.5% stake, while two South African companies, Bidvest Group and ACSA Gobal Ltd, hold 13.5% and 10%, respectively. The remaining 26% stake is held by state-run Airports Authority of India (AAI).
On 25 February, GVK Airport Holdings Ltd, a subsidiary of GVK Power & Infrastructure Ltd had signed a definitive agreement with Bidvest Group, exercising its “right of first refusal" to acquire its 13.5%.
According to recent corporate filings, GVK Power & Infrastructure Ltd, which runs the airport business through GVK Airports Holdings Pvt. Ltd, had a debt of ₹12,854 crore at the end of March 2018. The proceeds from the stake sale were to be used for debt retirement and for equity infusion into the upcoming Navi Mumbai Airport for which it won the development rights in 2017.