GMR Infrastructure completes strategic partnership deal with Groupe ADP

GMR Infrastructure Limited, a leading global infrastructure conglomerate announced the completion of a strategic partnership with Groupe ADP on Tuesday. The terms of the deal have been slightly altered, given the unprecedented situation due to the COVID-19 pandemic. 

According to the revised share purchase agreement (SPA), the second tranche of the investment for 24.01 per cent is structured into two parts: The first one is to be immediately paid at second closing, which is Rs 4,565 crore, inclusive of Rs 1,000 crore equity infusions in GMR Airports Limited. Meanwhile, the second part included the payment of earn-outs amounting to Rs 1,060 crore, subject to the accomplishment of certain performance by GMR Airports Ltd up to FY24.

Paris-based airport operator, Groupe ADP has also increased the earn-out for GMR, now pegged to Rs 5,535 crore as against the earlier amount of Rs 4,475 crore. The earn-outs are linked with operating performance metrics along with certain regulatory clarification in the next five years.

The second and final tranche payment worth Rs 4,565 crore has been received from Groupe ADP. The money will be used for reducing the debt of the GMR Group resulting in improved cash flow and profitability. According to the agreement, GMR will retain management control over the airport business having customary rights and board representation at GMR Airports Limited at its key subsidiaries.  

On Wednesday, the stock of GMR Infrastructure was trading around Rs 21.05 with a decline of 0.71 per cent at 11.14 am, on BSE.