GMR Airports ups 3% on move to acquire Fraport's 10% stake in IGI Airport

GMR Airports is in the process of raising its stake in Delhi International Airport by acquiring the 10 per cent stake owned by Germany's Fraport

GMR Airports Infrastructure shares soared 2.6 per cent on Tuesday (September 10) and logged an intraday high of Rs 93.31 per share on the BSE. The stock climbed after the company announced its plan to increase its stake in Delhi International Airport Limited (DAIL), by acquiring the 10 per cent interest held by Germany's Fraport. The transaction is expected to be completed within 180 days.

At around 9:31 AM, shares of GMR Airports were up 1.42 per cent or Rs 1.29, at Rs 92.19, compared to the BSE Sensex's rise of 168.79 points at 81,728.33.

The company, in an exchange filing on Monday, said, "GMR Airports Infrastructure Limited (formerly GMR Infrastructure Limited) (GIL), has entered into a share purchase agreement with Fraport AG Frankfurt Airport Services Worldwide (Fraport), towards acquisition by GIL from Fraport, of their current minority 10 per cent equity stake in Delhi International Airport Limited, a subsidiary of the company".

 

The company added that the deal would be for an amount of $126 million, as per its exchange filing.

“The acquisition of additional stake in DIAL is in line with our objective of consolidating our presence in core assets of the Group and signifies the importance of Delhi airport in the overall Group portfolio,” said Kiran Kumar Grandhi, Corporate Chairman of GMR Group.

GIL currently holds 64 per cent of the paid-up capital of DIAL and post the proposed acquisition, its stake in DIAL would increase to 74 per cent.

Airports Authority of India (AAI) holds the rest of the 26 per cent stake in DIAL. According to the company's exchange filing, Fraport’s appointment as the airport operator of DIAL shall continue to be governed by the Airport Operator Agreement executed regarding the same, post completion of the deal.

"Fraport has been one of the original shareholders and has been our partner in the Airport journey. They have extended significant technical support to Delhi Airport as per their role of Airport Operator,” said G. B. S. Raju, Business Chairman (Airports), GMR Group.

In the past one year, shares of GMR Airports have given returns of 42.5 per cent, compared to the BSE Sensex's rise of 22.4 per cent during the same period.