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 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.
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