GMR Airports sells 49% stake to French group for 10,780 crore – Times of India

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NEW DELHI: The GMR Group — India’s biggest private airport infra player — has picked Groupe ADP, formerly Aéroports de Paris, over a Tata Group-headed consortium to sell 49% stake in GMR Airports Limited (GAL) for Rs 10,780 crore. The deal, which values GMR Airports at Rs 22,000 crore, will see GAL getting Rs 5,248 crore immediately. Groupe ADP develops and manages airports, including Paris’s Charles de Gaulle, Orly and Le Bourget.
Last March, GIL had announced that a consortium of Tatas, GIC and SSG Capital Management will invest Rs 8,000 crore in GAL, valuing GMR Airports at almost Rs 22,500 crore. However, since Tata Group operates two airlines — Vistara and AirAsia India — airlines had been opposing its entry into the airport business.
In fact, now both the existing and upcoming airports of Delhi will have a strong European connection — ADP for Delhi and Flughafen Zurich, which is developing Greater Noida. Based on 2019 passenger statistics, the combined passengers handled by GMR Airports and Groupe ADP was 33.6 crore, the highest in the world.
Groupe ADP’s Rs 10,780-crore equity consideration, GMR Infra Limited said in a BSE filing, comprises of Rs 9,780 crore towards secondary sale of shares by GMR Group and Rs 1,000 crore equity infusion in GAL. “Groupe ADP has also pegged earn-outs up to Rs 4,475 crore linked to achievement of certain agreed operating performance metrics as well as on receipt of certain regulatory clarifications over the next five years. Thereby, total valuation, assuming all above earn-outs are successfully consummated, may reach Rs 26,475 crore on post-money basis. The first tranche of Rs. 5,248 crore will be received by GMR Group immediately. This money will help deleverage the group further and result in improved cash flows and profitability,” the GIL regulatory filing said.
It added that “as part of the terms of 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”.
GMR Group chairman G M Rao said: “The partnership with Groupe ADP is in line with GMR’s business direction to become a global airport developer and operator. 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.”
Aéroports de Paris SA-Groupe ADP chairman and CEO Augustin de Romanet said: “The acquisition of a 49% stake in GMR Airports fits within Groupe ADP’s strategy. It sets a robust industrial partnership and enables Groupe ADP 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. This acquisition will constitute a growth driver in the medium term, and also a transforming position for the group in one of Asia’s and the world’s most dynamic and promising countries.”





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