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Bloomberg
South Africa’s Bidvest Group Ltd won court approval to sell its holding in Mumbai International Airport to a third party, dealing a blow to majority holder GVK Power & Infrastructure Ltd’s bid to increase its ownership.
The ruling allowed unit Bid Services Division (Mauritius) Ltd to divest its 13.5 percent stake, dismissing GVK’s effort to exercise its right of first refusal. The judge said GVK failed to show any preparedness to purchase the shares.
GVK’s appeal was “ambitious†and it “inflated†the company’s readiness to buy, the court said. Despite several rounds of negotiations to reach an out-of-court settlement, GVK didn’t show a “genuine inclination†to complete the transaction, according to the ruling.
GVK, which is trying to increase its stake to 74 percent from 50.5 percent, had offered in March to buy a 10 percent stake held by a unit of Airports Co South Africa. Billionaire Gautam Adani’s Adani Enterprises Ltd is eyeing a stake in Mumbai airport, according to reports.
India will become the third-largest air traffic market in 10 years, with more first-time flyers emerging from the country’s growing middle class, according to the International Air Transport Association.