GMR sells 49% stake to French firm

GMR Infrastructure Limited (GIL) has announced a strategic partnership with Groupe ADP for its Airports Business.

It has signed a Share Purchase Agreement pursuant to which Groupe ADP will hold 49% stake in GMR Airports Limited (GAL) for an equity consideration of ₹10,780 crore, valuing GAL at the base post money valuation of ₹22,000 crore.

This equity consideration comprises: ₹9,780 crore towards secondary sale of shares by GMR group; and ₹1,000 crore equity infusion in GAL.

The first tranche of ₹5,248 crore will be received by GMR Group immediately. The group will retain management control over the airports business with Groupe ADP having the customary rights and board representation at GAL and key subsidiaries.

The deal will also open up new opportunities for route development, enhanced expertise in operations, retail, IT, innovation, engineering and many more areas, said an official spokesperson.

As per 2019 passenger statistics, the combined passengers handled by GMR Airports and Groupe ADP stands at 336.5 million, the highest across the world.

“The partnership with Groupe ADP is in line with GMR’s business direction to become a global airport developer and operator,.” said chairman of the GMR Group G.M. Rao.

Chairman and Chief Executive Officer of Aéroports de Paris SA-Groupe ADP Augustin de Romanet said the deal “fits within our strategy to build, only two years after taking control of TAV Airports, a unique worldwide network of airports with a solid industrial expertise and strong development capacities.”

The partnership is to be built on two-way exchange of expertise, personnel, knowledge and market access to benefit passengers and other stakeholders will also benefit immensely and set newer industry-defining benchmarks.

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