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GMR Airports sells a 49% stake to the French group for Rs 10,780 million


NEW DELHI: The GMR Group, India’s largest private airport infrastructure player, chose Groupe ADP, formerly Aéroports de Paris, instead of a consortium led by the Tata Group to sell 49% of GMR Airports Limited (GAL) for 10,780 million rupees. The agreement, which values ​​GMR airports at Rs 22,000 crore, will make GAL obtain Rs 5,248 crore immediately. Groupe ADP develops and manages airports, including Charles de Gaulle, Orly and Le Bourget in Paris.

Last March, GIL announced that a consortium of Tatas, GIC and SSG Capital Management will invest Rs 8,000 crore in GAL, valuing GMR airports at almost Rs 22,500 crore. However, since Tata Group operates two airlines, Vistara and AirAsia India, the airlines had opposed their entry into the airport business.

In fact, now existing and future airports in Delhi will have a strong European connection: ADP for Delhi and Flughafen Zurich, which is being developed by Greater Noida. According to the 2019 passenger statistics, the combined passengers managed by GMR Airports and Groupe ADP were 33.6 million rupees, the highest in the world.

The equity consideration of Rs 10,780 million from Groupe ADP, GMR Infra Limited said in a BSE presentation, is made up of Rs 9,780 million for the secondary sale of shares by the GMR Group and an infusion of Rs 1 billion in GAL. “Groupe ADP has also linked earnings of up to Rs 4,475 million rupees linked to the achievement of certain agreed operating performance metrics, as well as the receipt of certain regulatory clarifications over the next five years. Therefore, the total valuation, assuming that all previous earnings are consumed successfully, can reach Rs. 26,475 crore after money. The first section of Rs. The GMR Group will receive 5,248 million rupees immediately. This money will help to further unleash the group and will result in better cash flows and profitability, ”said the regulatory presentation of GIL.

He added that “as part of the terms of the transaction, GMR will retain administrative control over the airport business with Groupe ADP having customary rights and representation of the board in GAL and its key subsidiaries.”

The president of the GMR Group, G M Rao, said: “The partnership with Groupe ADP is in line with GMR’s business management to become a global developer and operator of airports. We have been on a journey to define the airports of the future with a key focus on passenger experience by taking advantage of improved technology and offering superior services. With Groupe ADP, GMR will have more fluid access to global markets, opening new avenues for business growth. ”

The president and CEO of Aéroports de Paris SA-Groupe ADP, Augustin de Romanet, said: “The acquisition of a 49% stake in GMR Airports is consistent with the strategy of Groupe ADP. It establishes a solid industrial association and allows Groupe ADP to build, just two years after taking control of TAV Airports, a unique global network of airports with solid industrial experience and strong development capabilities. This acquisition will constitute a medium-term growth engine and also a transformative position for the group in one of the most dynamic and promising countries in Asia and the world. ”

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