“SATS, in a joint bid with Cargo Service Center India (CSC), has won a cargo handling concession contract in Chhatrapati Shivaji International Airport in Mumbai, India.”, reported The Business Times. The joint venture constituted between CSC and SATS Investment, a subsidiary of SATS wherein SATS Investment has subscribed for a 49% equity stake in CSC’s subsidiary, Mumbai Cargo Service Center Airport, which will be responsible for operating the concession and managing the international cargo facilities at the airport. The gross deal value of the project is estimated to be around INR 600 crores (around $94.3).

DSK Legal advised Cargo Service Center and its promoters, Tushar Jani and Khushroo Dubash, in connection with the tender process, concession agreement with MIAL and joint-venture agreement for the project, and also assisted in raising debt facilities from the lenders. The DSK transaction team was led by partner Ajay Shaw, managing associate Ashish Pahariya along with associates Soham Mookherjee, Anisha Kumar and Yojit Pareek, according to DSK’s press release.

A Khaitan & Co Mumbai-based team advised Sats Investments, a subsidiary of SATS Limited on the transaction, with a team including partner Akhil Bhatnagar, partner Gahan Singh, senior associate Samridha Neupane, senior associate Jhinook Roy, associate Dhruv Chopra and associate Harshita Khurana.

Luthra & Luthra Mumbai acted as the legal counsel for IDFC Infrastructure Finance and L&T Infrastructure Finance , the lenders to the project, whereas SBI Capital Markets was the arranger for the debt transaction.

The cargo operations handled at the international airport in Mumbai is among the largest in the country and this is the first time that MIAL has awarded a long-term concession to a private operator for a period of 19 years.

2017-12-26

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