Active Stocks
Fri Apr 19 2024 15:56:00
  1. Tata Steel share price
  2. 162.10 1.31%
  1. Tata Motors share price
  2. 963.20 -0.84%
  1. NTPC share price
  2. 350.90 -0.14%
  1. ITC share price
  2. 424.80 1.40%
  1. Power Grid Corporation Of India share price
  2. 281.70 0.54%
Business News/ Companies / News/  GMR Group concludes deal with Groupe ADP for 49% stake sale in airport arm
BackBack

GMR Group concludes deal with Groupe ADP for 49% stake sale in airport arm

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 has been structured in two parts

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,. Photo: MintPremium
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,. Photo: Mint

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.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

ABOUT THE AUTHOR
Rhik Kundu
Rhik writes about the Indian economy and its crucial indicators. He is constantly navigating corporates, decoding policies, and dabbling with everything in between.
Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 08 Jul 2020, 03:20 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App