France's Groupe ADP to Sell Significant Stake in Indian Airport Operator GMR Airports for Over $1.3 Billion

Groupe ADP Sells Stake in GMR Airports for Over Rs 10,100 Crore

France's Groupe ADP, the Paris airport operator, is selling up to 7.3 per cent stake in GMR Airports Ltd (GAL) to the GMR promoter group for more than Rs 10,100 crore. The multi-layered deal will see Groupe ADP's overall stake in GAL come down to 25 per cent from 32.3 per cent once it is complete.

GAL, the airports business arm of the GMR Group, operates various airports, including those at Delhi and Hyderabad. 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 GAL and currently held by Groupe ADP.

The overall cash proceeds generated by this transaction are estimated to be 924 million euros, which translates to around $1.08 billion or over Rs 10,100 crore at current exchange rates. The French group has entered into agreements for the sale of its securities representing 7.3 per cent stake in GAL to the GMR promoter group.

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The deal will see the GMR promoter group's holding in GAL rise to 42.2 per cent, up from 34.9 per cent currently. Meanwhile, Groupe ADP's stake will come down to 25 per cent, while the public shareholding in GAL will remain at around 32.8 per cent.

The transaction involves the sale of 3.4 per cent of GAL's ordinary equity shares for 256 million euros on Thursday. Additionally, the GMR promoter group has call options and Groupe ADP a corresponding put option exercisable to purchase and sell, respectively, securities representing 3.9 per cent of GAL's ordinary equity shares for an estimated 285 million euros.

The sale resulting from the exercise of these options should be completed by April 30, 2027. The early purchase by GMR Group of the convertible bonds (FCCBs) for a nominal (face) value of 301 million euros, plus accrued interest at the date of the transaction, is to be completed by March 31, 2027.

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Upon completion of the transaction, Groupe ADP's governance rights in GAL and its co-promoter status will remain unchanged. Groupe ADP said the transaction is part of its strategy to optimise the financial contribution of its international assets and added that it does not intend any further divestment of its stake in GAL and is engaged in a balanced long-term partnership.

In 2020, Groupe ADP snapped up a 49 per cent stake in GAL, which was then a subsidiary of GMR Infrastructure Ltd (GIL), for around 1.3 billion euros. Later, in July 2024, GAL was listed as a separate entity on the Indian bourses after a restructuring of GIL.