GMR Infrastructure on Thursday said France's Groupe ADP would acquire a 49 per cent stake in its airport business for an equity consideration of Rs 10,780 crore. The company has signed a share-purchase agreement with Groupe ADP valuing GMR Airports Limited at Rs 22,000 crore. GMR manages the Delhi and Hyderabad airports.
GMR Group Chairman G M Rao said: “The partnership with Groupe ADP is in line with GMR’s business direction… With Groupe ADP, GMR will have smoother access to global markets, opening up newer avenues of business growth.”
"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 company said in a statement.
France's international airports operator has also set aside earn-outs up to Rs 4,475 crore linked to performance metrics as well as on receipt of certain regulatory clarifications over the next five years. The statement said if all the goals were met, GMR's valuation would reach Rs 26,475 crore on a post-money basis.
GMR will retain management control over the airports business, and Groupe ADP will have customary rights and board representation at GMR Airports Ltd (GAL) and its key subsidiaries.
GAL operates and develops airports globally. The group currently operates five airports, including Mactan Cebu International Airport in the Philippines in partnership with Megawide.