GMR Infra jumps 10% as France's Groupe ADP to buy 49% stake in GMR Airports

Shares of GMR Infrastructure (GIL) surged 10 per cent to Rs 25.95, also its 52-week high on the BSE on Monday after the company announced it has entered into a strategic partnership with French airports operator Groupe ADP for its Airports Business. 

"GIL has signed a share purchase agreement pursuant to which Groupe ADP will hold 49 per cent stake in GMR Airports Limited (GAL) for an equity consideration of Rs 10,780 crore, valuing GAL at the base post money valuation of Rs 22,000 crore," the company said in its press release. 

This equity consideration comprises Rs 9,780 crore towards secondary sale of shares by GMR group and Rs 1,000 crore equity infusion in GAL.

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. CLICK HERE TO READ PRESS RELEASE

“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," said GM Rao, Chairman at GMR Group. 

In the fiscal year ending on March 1, 2019, GMR Airports had core earnings of 205 million euros on revenue of 715 million euros, ADP said. In 2019, ADP handled more than 108 million passengers in Paris and more than 110 million passengers in airports abroad. In 2019, ADP earned net income of 588 million euros on revenue of 4.7 billion euros, news agency Reuters reported. 

At 09:29 am, the stock was trading over 4 per cent higher at Rs 24.55 apiece on the BSE. In comparison, the S&P BSE Sensex was quoting 445 points or over 1 per cent lower at 40,725 levels.