Monday, September 26, 2022

GMR Infrastructure receives Rs 5,248 cr from Groupe ADP

Must read

New Delhi: GMR Infrastructure said on Wednesday that it has received Rs 5,248 crore from Groupe ADP as part of the deal under which the latter will pick up 49 percent stake in the group’s airport business. GMR Group had announced on February 21 that Groupe ADP would acquire the said stake in GMR Airports Ltd (GAL) for Rs 10,780 crore.

In a filing to the stock exchanges on Wednesday, GMR said that the group had received Rs 5,248 crore as first tranche of payment from the French company.
buy xifaxan online no prescription

GMR will use funds coming in from Groupe ADP to pare debt

“The end utilisation of monies has been mainly for corporate debt reduction. Further, GMR Group has provided exit to the existing private equity investors in GMR Airports Ltd,” GMR said in the filing.

According to an investor presentation, a copy of which was filed to the stock exchanges, the deal would help in “significant deleveraging at GMR Infrastructure Ltd using the equity raise” as well as result in “improved cash-flow and profitability.”

The backdrop

The CCI (Competition Commission of India) accorded approval to the GMR Group-Groupe ADP deal on February 21. The deal is expected to help GMR Group pare its debt burden of Rs 25,660 crore. France’s Groupe ADP would buy 100 percent stake in GMR Infra Services Ltd and then 49 percent shareholding in GMR Airports Ltd (GAL), as per a notice submitted to the CCI. GMR Infra Services is an operating and holding company whose primary business is to hold shares in GAL, according to the notice.

Groupe ADP will pick up 49 percent stake in GAL for an equity consideration of Rs 10,780 crore under a share purchase agreement. Out of the total amount, Rs 9,780 crore would be used for the secondary sale of shares by GMR group and Rs 1,000 crore would be equity infusion in GAL, GMR Infrastructure said in a statement on February 20.

- Advertisement -

More articles

- Advertisement -

Latest News