NEW DELHI: Infrastructure major GMR Group has concluded a deal to complete 49% stake sale in its airport arm to Paris-based Groupe ADP, the GMR Group said in a statement on Wednesday.
As per the revised share purchase agreement, Groupe ADP's second tranche of the investment for picking up 24.01% stake in GMR Airports Limited (GAL) has been structured in two parts.
The first part entails a firm amount totalling ₹4,565 crore, including ₹1,000 crore equity infusion in GAL, which was to be immediately paid by Groupe ADP while making its second tranche of payments.
The second involves earn-outs amounting to ₹1,060 crore, subject to the achievement of certain performance related targets by GAL till FY2024.
Accordingly, Groupe ADP has increased earn-outs for GMR which are now pegged at up to ₹5,535 crore compared to the earlier ₹4,475 crore, the GMR group said.
"These earn-outs are linked to the achievement of certain agreed operating performance metrics as well as the receipt of certain regulatory clarifications over the next five years," it added.
GMR Group had in February said that French airport operator Groupe ADP would acquire 49% stake in GAL for ₹10,780 crore.
At the time of that announcement earlier this year, ADP had paid ₹5,248 crore in the first tranche for acquiring stake in GAL. The French company has now paid ₹4,565 crore in the second tranche.
"This money will primarily be used in servicing the debt which will help deleverage GMR Group further and result in improved cash flows and profitability," the GMR Group said.
As part of the terms of transaction, GMR Group will retain management control over the airports business with Groupe ADP having the customary rights and board representation at GMR Airports Limited and its key subsidiaries, it added.
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 Philippines.
Groupe ADP develops and manages airports, including Paris-Charles de Gaulle, Paris-Orly and Paris-Le Bourget.