France’s Groupe ADP is selling up to 7.3% stake in GMR Airports to the GMR promoter group for more than Rs 10,100 crore, a PTI report said. 

Once the multi-layered deal is complete, Groupe ADP’s overall stake in GMR Airports will fall to 25% from 32.3%. GMR Airports, the airports business arm of the GMR Group, operates various airports, including at Delhi and Hyderabad.

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In 2020, Groupe ADP snapped up a 49% stake in GMR Airports for around 1.3 billion euros. Later, in July 2024, GAL was listed as a separate entity on the Indian bourses following GMR Infrastructure’s restructuring. 

Deal execution

The deal will be executed through an initial sale and entry into options relating to ordinary or preference shares, as well as the early purchase by GMR Group of the convertible bonds issued by GMR Airports and currently held by Groupe ADP.

“The overall cash proceeds generated by this transaction are estimated to be 924 million euros,” the French group said in a statement. Under the deal, Groupe ADP sold 3.4% of GAL’s ordinary equity shares for 256 million euros on Thursday.

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Upon completion of the transaction, Groupe ADP’s governance rights in GAL and its co-promoter status will remain unchanged. There was no comment from the GMR Group on the transaction.

GMR Airports current holding

Currently, the GMR promoter group holds 34.9% in GMR Airports, and its holding will rise to 42.2% post the deal. While Groupe ADP’s stake will fall to 25%, the public shareholding in GMR Airports will remain around 32.8%.

GMR promoter group has call options and Groupe ADP has a corresponding put option exercisable to purchase and sell, respectively, securities representing 3.9 of GMR Airports’ ordinary equity shares for an estimated 285 million euros. Any sale resulting from the exercise of these options should be completed by April 30, 2027.

Groupe ADP said the transaction is part of its strategy to optimize the financial contribution of its international assets and added that it does not intend any further divestment of its stake in GAL and that it is engaged in a balanced, long-term partnership.