New Delhi headquartered GMR Group company – GMR Infrastructure share price surged to a fresh 52-week high at Rs 25.95 on BSE after the Competition Commission of India approved the proposed 49% stake sale in its airport business to France’s Groupe ADP.
The regulator’s clearance is through the green channel, which allows for an automatic system for speedy approval of combinations, subject to certain conditions.
Aeroports de Paris SA (ADP) would buy a 100% stake in GMR Infra Services Ltd and then 49% shareholding in GMR Airports (GAL), as per a notice submitted to the regulator.
GMR Infra Services is an operating and holding company. Its primary business is to hold shares in GAL, according to the notice.
Under a share purchase agreement, Groupe ADP would have a 49% stake in GAL for an equity consideration of Rs 10,780 crore. Out of the total amount, Rs 9,780 crore would be towards the secondary sale of shares by GMR group and Rs 1,000 crore would be equity infusion in GAL.
GMR Infrastructure, as a part of the agreement, will retain management control over the Airports Business with Groupe ADP having the customary rights and board representation at GAL & its key subsidiaries.
Earlier, the GMR group was to enter into a deal with Tatas for the airport business.
GMR Group operates Indira Gandhi International Airport in New Delhi, Hyderabad’s Rajiv Gandhi International Airport and Mactan Cebu International Airport in partnership with Megawide in the Philippines.
This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.