GMR concludes a sale agreement in the airport sector with ADP in France

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New Delhi: GMR Infrastructure Ltd, the company that operates the airports of Delhi and Hyderabad, announced today that it has successfully concluded its agreement to sell 49% of its airport activities to the French group ADP.
The contours of the agreement, however, have undergone “slight modifications” due to the circumstances arising from the economic impact of the COVID19 pandemic on businesses.”In accordance with the revised share purchase agreement, the second tranche of the 24.01% investment by GMR Airports Limited (GAL) was structured in two parts: a firm amount, immediately paid at the second closing , for a total of Rs 4,565 crore, including Rs 1,000 crore equity infusion in GAL. Additional payments amounting to 1,060 crore rupees, subject to the achievement of certain performance-related targets by GAL until 2010, ”said a press release from the company.

The press release added that Groupe ADP increased the price supplements for GMR – linked to the achievement of certain agreed operational performance measures as well as the receipt of certain regulatory clarifications over the next 5 years – and are now indexed up to ” at Rs 5,535 crore compared to the previous crore Rs 4,475.

In February 2020, GMR Group had signed an agreement with Groupe ADP to sell 49% of GAL’s capital for a counterpart in equity of Rs 10,780 crores.

Under the two-step agreement, the French company will initially buy 24.99% in GMR Airports, then complete it by buying 24.01% more. The first tranche of Rs 5,248 crore was immediately received by the GMR group and used to service the company’s debt.

The company said that the amount of Rs 4,565 Crore for the payment of the second and last installment of Groupe ADP has been received and “will be mainly used for debt service”.

With this, the GMR group finally concludes the sale of its stake in GAL. A previous agreement with a consortium led by Tata and including a subsidiary of the GIC of Singapore as well as of SSG Capital Management of Hong Kong to sell 44.44% of the capital of its airport activities for 8500 crore rupees was an obstacle.

The agreement has not been approved by the government due to a rule that an entity holding an Indian airline cannot hold more than 10% in a local airport and.

Tata Sons owns more than half of Vistara and AirAsia India, and the previously proposed 20% interest in GMR airport operations would give it a 12.8% interest in Delhi Airport.

GMR operates India’s busiest airport in Delhi and the fourth in Hyderabad. It is building a new airport in Goa and won the management contract for Nagpur airport. It operates Mactan-Cebu International Airport in the Philippines and is building a new airport in Crete, Greece.

Groupe ADP operates three airports in Paris – Charles de Gaulle, Orly and Le Bourget – in addition to 26 other international airports.

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