GIL has signed a share purchase agreement pursuant to which Groupe ADP will hold 49% stake in GMR Airports (GAL) for an equity consideration of Rs 10,780 crore, valuing GAL at the base post money valuation of Rs 22,000 crore.
This equity consideration comprises of Rs 9,780 crore towards secondary sale of shares by GMR group and Rs 1,000 crore worth of equity infusion in GAL.
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.
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.
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 & its key subsidiaries.
The deal will unveil a first of its kind airport development and operations platform globally. Together, GMR and Groupe ADP will combine unmatched strengths in airport development and operations, offering the highest levels of passenger experience. This will also open up new opportunities for route development, enhanced expertise in operations, retail, IT, innovation, engineering and many more areas. As per 2019 passenger statistics, the combined passengers handled by GMR Airports and Groupe ADP stands at 336.5 million, the highest across the world.
GM Rao, Chairman, GMR Group said, The partnership with Groupe ADP is in line with GMR’s business direction to become a global airport developer and operator. We have been on a journey of defining airports of the future with key focus on passenger experience by leveraging enhanced technology and offering superior amenities. With Groupe ADP, GMR will have smoother access to global markets, opening up newer avenues of business growth.
GMR Infrastructure is a leading global infrastructure conglomerate with interests in airport, energy, transportation and urban infrastructure.
The company reported a consolidated net loss of Rs 280.74 crore in Q3 December 2019 as compared to a net loss of Rs 561.04 crore in Q3 December 2018. Net sales in the December quarter rose 7.6% YoY to Rs 1990.76 crore.
