The Adani Group has launched a new company in Kenya named Airports Infrastructure PLC (AIP).
Through its step-down subsidiary Global Airports Operator L.L.C (GAO), the Indian company now intends to manage, upgrade, and modernize airports in the country.
The company made the announcement through a notice dated August 30, in an official communication to the Bombay Stock Exchange (BSE) and the National Stock Exchange of India Limited (NSE).
Further, although the company is yet to begin business operations, it has been registered under The Companies Act of 2015 and is fully owned by Global Airports Operator L.L.C.
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Details of the New Company and Transactions
Airports Infrastructure PLC (AIP) has an issued share capital of Ksh675 million, divided into 6,750 equity shares, each valued at Ksh100,000.
Moreover, the company noted that there are no related party transactions or regulatory approvals required for the acquisition, meaning that the process is less complicated.
Also, no cash consideration or share swap was involved in the creation of this subsidiary, as the entire share capital is held by GAO.
The Adani Group has emphasized that the establishment of AIP is a significant step towards enhancing airport infrastructure in Kenya, although details about specific projects or timelines have not yet been revealed.
On the other hand, the move comes at a time when the potential leasing of Jomo Kenyatta International Airport (JKIA) to Adani has sparked uproar among stakeholders in Kenya, particularly among the Kenya Airport Authority (KAA) workers and unions.
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What the Entry of Adani Subsidiary Means for Kenya
Therefore, the establishment of a subsidiary suggests that Adani may pursue multiple airport-related projects in Kenya, beyond just the initial proposal of leasing JKIA.
I addition, there was uncertainty about whether the plan would take effect, especially because of the opposition from Kenyans which included a lawsuit.
However, now that the subsidiary is in place, Adani is in a position to start implementing its strategies faster.
This could mean advancing talks with the government, negotiating terms more assertively, and even beginning some preliminary work on airport infrastructure or operations.
Earlier on July 28, President William Ruto stated that the leasing JKIA out to investors was important because it allowed the government to expand the airport and ensure it serves Kenyans better under the Public-Private Partnership (PPP).
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