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GMR Infra receives first tranche payment of Rs 5,248 crore from Groupe ADP

On February 21, it was announced that Groupe ADP would acquire 49 per cent stake in GMR Airports for Rs 10,780 crore

Press Trust of India  |  New Delhi 

GMR Infra

on Wednesday said it has received Rs 5,248 crore from Groupe ADP as part of a deal wherein the French major is buying 49 per cent stake in the domestic group's airport business.

On February 21, it was announced that Groupe ADP would acquire 49 per cent stake in Ltd (GAL) for Rs 10,780 crore.

In a filing to stock exchanges on Wednesday, said the group has received Rs 5,248 crore towards first tranche of payment from Groupe ADP.

"The end utilisation of monies has been mainly for corporate debt reduction. Further, GMR Group has provided exit to the existing private equity investors in Ltd," it added.

The deal would help the group to reduce its debt burden.

As per an investor presentation, a copy of which was filed to the stock exchanges, the deal would help in "significant deleveraging at Ltd using the equity raise" as well as result in "improved cash-flow and profitability"

Aeroports de Paris SA (ADP) would buy 100 per cent stake in Services Ltd and then 49 per cent shareholding in GAL. Services is an operating and holding company. Its primary business is to hold shares in GAL.

Shares of GMR Infrastructure dropped 4.50 per cent to close at Rs 24.40 on the BSE on Wednesday.

Competition Commission has given its nod for the deal under the green channel, which allows for an automatic system for speedy approval of combinations, subject to certain conditions.

First Published: Wed, February 26 2020. 16:04 IST
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