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Business News/ Industry / Infrastructure/  GMR Infra rallies after CCI nod to partner with Groupe ADP

GMR Infra rallies after CCI nod to partner with Groupe ADP

GMR Infra has signed a share purchase agreement with Groupe ADP, which will hold 49% stake in GMR Airports
  • GMR Infra will retain management control over its airport business
  • GMR Airports operates Delhi international airport.Premium
    GMR Airports operates Delhi international airport.

    Mumbai: Shares of GMR Infrastructure Ltd (GIL) on Monday jumped 12.50% after anti-trust body Competition Commission of India (CCI) approved the company's proposal to sell 49% stake in its airport business--GMR Airports Ltd (GAL)--to France's Groupe ADP.

    GIL has signed a share purchase agreement with Groupe ADP, which will hold 49% stake in GAL for an equity consideration of 10,780 crore. This will value GAL at 22,000 crore, the company informed the stock exchanges after market hours on Thursday.

    Markets were closed on Friday due to Mahashivratri.

    The equity consideration comprises 9,780 crore of secondary sale of shares by GMR and 1,000 crore worth of equity infusion in GAL.

    As part of the transaction, GIL will receive 5,248 crore immediately. The amount will help the group deleverage and improve cash flows and profitability. GMR will retain management control over its airport business, while Groupe ADP will have the customary rights and board representation at GAL and key subsidiaries.

    "The deal will unveil a first of its kind airport development and operations platform globally. GMR and Groupe ADP will combine unmatched strengths in airport development and operations, offering the highest levels of passenger experience," the company said.

    "This will also open up new opportunities for route development, enhanced expertise in operations, retail, IT, innovation, engineering and many more areas. 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 company added.

    The partnership with Groupe ADP is in line with GMR's business objective to become a global airport developer and operator," said GM Rao, chairman, GMR group said.

    "We have been on a journey of defining airports of the future with key focus on passenger experience by leveraging enhanced technology and offering superior amenities. With Groupe ADP, GMR will have smoother access to global markets, opening up newer avenues of business growth," Rao said.

    At 12:20 am, the stock traded 11.02% higher at 26.20 apiece on the BSE today. However, the benchmark BSE Sensex was down 352 points or 0.86% at 40,818.08.

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    Published: 24 Feb 2020, 12:28 PM IST
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