GMR Infra agrees to settlement with PE investors, arbitration withdrawn

Infrastructure major GMR Infra on Monday announced it had received the consent award from the arbitral tribunal based on the settlement agreement signed by it with private equity investors. This was with respect to certain arbitration proceedings administered by the Singapore International Arbitration Centre.

The settlement took place with SBI Macquarie, Standard Chartered Private Equity, JM Financial Old Lane and others that had invested Rs.14.78 billion in the form of compulsorily convertible preference shares (CCPS) in GMR Airports Ltd in 2010-2011 and 2011-12.

“Pursuant to the settlement agreement, all parties decided to withdraw the ongoing arbitration and pursuant to binding agreements giving effect to the terms of the settlement the Investors (along with certain of their affiliates) would acquire 5.86 per cent equity of GMR Airports Ltd at a 100 per cent valuation of Rs 210 billion and receive a payment of Rs 35.60 billion in lieu of their entire CCPS,” the company said in a statement.

The cash payment would be partly funded by GMR Infra through sale of the following of its airport-related equity ownerships to GAL:

* Entire shareholding of 40 per cent in CEBU airport in the Philippines at a 100 per cent valuation of $590 million

* Entire shareholding of 50 per cent in Clark EPC project in the Philippines at a 100 per cent valuation of $9.7 million

* Entire shareholding of 40.1 per cent in Delhi Airport Parking Services Ltd at a 100 per cent valuation of Rs 4.99 billion.