Adani’s firm takes control of Mumbai airport from GVK

Bloomberg

Adani Enterprises Ltd has taken control of Mumbai’s international airport from GVK Group, in a bold bet by billionaire Gautam Adani that travel will stage a rapid recovery after being crushed by the pandemic.
The deal for Mumbai International Airport Ltd, India’s second busiest, makes Adani Airport Holdings Ltd the nation’s largest airport infrastructure company, accounting for 25% of all passenger traffic and 33% of air cargo, according to a statement.
While the coronavirus pandemic has devastated the global aviation industry, Adani is taking a longer view, betting on an Indian air-transport market that is forecast to become the world’s third-largest by 2026, according to the International Air Transport Association.
“While the world navigates its way out of an unprecedented crisis, post-pandemic demand for air travel in India and the rest of the world is expected to surge,” Adani Airport said in the statement. Adani Airport will “cater to a 300-million-strong post-pandemic consumer base comprising fliers and non-fliers.”
Shares of Adani Enterprises rose as much as 2.6% in early Mumbai trading on Wednesday, before erasing gains to be little changed.
Adani is seeking a loan of about $1 billion to refinance the airport’s 80 billion rupees debt, Bloomberg News reported earlier. Adani Airport in August agreed to acquire the debt of GVK Airport Developers, and bought a 23.5% stake in the gateway from Airports South Africa and Bidvest Group.