GMR Infrastructure share price jumps 11% as it signs deal with Groupe ADP for 49% airport stake

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Published: February 24, 2020 10:32:36 AM

GMR Infrastructure Limited jumped more than 11 per cent during the early hours of trade on Monday morning, hitting a 52-week-high of Rs 26.35.

According to the agreement, Groupe ADP will hold 49 per cent stake in GMR Airports Limited for an equity consideration of Rs 10,780 crore, valuing GAL at the Base Post Money Valuation of Rs 22,000 crore.

GMR Infrastructure Limited jumped more than 11 per cent during the early hours of trade on Monday morning, hitting a 52-week-high of Rs 26.35, on the back of GMR Infrastructure Limited’s announcement that it has entered into a share purchase agreement with French airport operator Groupe ADP. According to the agreement, ADP will hold 49 per cent stake in GMR Airports Limited for an equity consideration of Rs. 10,780 crore, valuing GAL at the Base Post Money Valuation of Rs. 22,000 crore. The share price jumped after opening at Rs 25.95 a piece.

The equity consideration consists of Rs 9,780 crore towards secondary sale of shares by GMR group; and  Rs 1,000 crore equity infusion in GMR Airports Limited, according to a press release by GMR Infrastructure. “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 release said.

The terms of the agreement keep GMR at the helm of affairs as it retains management control over the airports business, meanwhile ADP gets customary rights and Board representation at GMR Airports Limited and its key subsidiaries.  ADP develops and manages airports, including Paris-Charles de Gaulle, Paris-Orly and Paris-Le Bourget. GMR Airports have a capacity to handle more than 172 million passengers across properties in India and abroad. While ADP group handled through its brand Paris Aéroport more than 108 million passengers and 2.2 million metric tons of freight and mail at Paris-Charles de Gaulle and Paris-Orly, and more than 110 million passengers in airports abroad in 2019. 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. 

 Domestic equity benchmarks Sensex and Nifty opened in negative territory on Monday,  S&P BSE Sensex dropped 450 points or 1.09 per cent lower at 40,720, while the broader Nifty 50 index was ruling at 11,930, down 150 points or 1.25 per cent.

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