Under a share purchase agreement, France’s Groupe ADP will acquire a 49% stake in GMR Airports Ltd (GAL) for an equity consideration of Rs 10,780 crores. This values GAL at the base post money valuation of Rs 22,000 crores. “The first tranche of Rs 5,248 crores will be received by GMR Group immediately. This money will help deleverage the Group further and result in improved cash flows and profitability,” GMR Group said, in a statement, on February 20, 2020.
Out of the total amount, Rs 9,780 crores would be towards secondary sale of shares by GMR Group and Rs 1,000 crores would be equity infusion in GAL, as per the statement. “As part of the terms of the transaction, GMR will retain management control over the Airports Business with Groupe ADP having the customary rights and board representation at GAL and its key subsidiaries,” it said.
GMR Group operates Indira Gandhi International Airport in New Delhi, Hyderabad’s Rajiv Gandhi International Airport and Mactan Cebu International Airport in partnership with Megawide in the Philippines. Airports at Mopa in Goa and at Heraklion, Crete, Greece in partnership with GEK Terna, are under development by GMR Group. Groupe ADP develops and manages airports, including Paris-Charles de Gaulle, Paris-Orly and Paris-Le Bourget.
Tata Group, GIC, SSG Capital Management to invest Rs 8,000 crores in GMR Airports
GMR Infrastructure has announced that Tata Group, along with an affiliate of Singapore’s sovereign wealth fund GIC and SSG Capital Management, will invest Rs 8,000 crores in the company’s airports business
March 28, 2019: GMR Infrastructure has signed a binding term sheet with Tata Group, GIC and SSG Capital Management, pursuant to which the investors have agreed to invest Rs 8,000 crores in GMR Airports Ltd, GMR Infra said in a regulatory filing, on March 27, 2019. The investment amount of Rs 8,000 crores will consist of Rs 1,000 crores equity infusion in GMR Airports and Rs 7,000 crores towards the purchase of GMR Airports Ltd’s equity shares from GMR Infrastructure and its subsidiaries.
Following the transaction, GMR Infrastructure and its subsidiaries will hold around 54% stake in GMR Airport, while the employee welfare trust will hold about 2%, Tata Group around 20%, GIC about 15% and SSG around 10%. As part of this transaction, GMR Infrastructure also intends to provide exit to existing private equity investors, who hold 5.8% equity stake in GMR Airport Ltd.
The proposed investment is subject to definitive documentation, customary regulatory approvals, lender consents and other approvals, the company added. Following the investment, GMR Infrastructure proposes to demerge its energy, highways, urban infrastructure and transportation businesses, leading to separation of its airport business, subject to customary consents, regulatory and corporate approvals.