New Delhi, GMR Infrastructure Ltd (GIL) has entered into a strategic partnership with France’s Groupe ADP to sell 49 per cent stake in its airports arm for an equity consideration of Rs 10,780 crore.
GIL signed a share purchase agreement with Groupe ADP for the stake sale which will value GMR Airports Ltd (GAL) at the base post money valuation of Rs 22,000 crore.A
“This equity consideration comprises of Rs 9,780 crore towards secondary sale of shares by GMR group, and Rs 1,000 crore equity infusion in GAL,” GIL said in a statement.
“Groupe ADP has also pegged ‘Earn-outs’ up to Rs 4,475 crore linked to achievement of certain agreed operating performance metrics as well as on receipt of certain regulatory clarifications over next 5 years. Thereby, total valuation assuming all above ‘Earn-outs’ are successfully consummated, may reach Rs 26,475 crore on ‘Post Money Basis’.”
As per the statement, 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 statement said.
“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.”