GMR Airports Infrastructure Ltd to acquire 10% Interest in Delhi International Airport Ltd

GMR Airports Infrastructure Limited (Formerly GMR Infrastructure Limited) ("GIL"), has entered into a Share Purchase Agreement ("SPA") with Fraport AG Frankfurt Airport Services Worldwide ("Fraport"), towards acquisition by GIL from Fraport, of their current minority 10% equity stake in Delhi International Airport Limited ("DIAL"), a subsidiary of the Company. The said acquisition would be for a negotiated aggregate consideration of USD 126 million.

GIL currently holds 64% of the paid-up capital of DIAL and post the proposed acquisition, its stake in DIAL would increase to 74%. Airports Authority of India (AAI) continues to holds 26% equity stake of DIAL. Post consummation of the Transaction, Fraport's appointment as the Airport Operator of DIAL shall continue to be governed by the Airport Operator Agreement and/or any other agreement(s) executed in relation to its role as the Airport Operator.

The transaction, subject to the AAI's approval and approval of GIL Shareholders, along with customary closing conditions, is expected to be concluded within 180 days from the date of execution of the said SPA.

G. B. S. Raju, Business Chairman (Airports), GMR Group acknowledging the role of Fraport, said "Fraport has been one of the original shareholders and have been our partners in Airport journey. They have extended significant technical support to Delhi Airport as per their role of Airport Operator."

Kiran Kumar Grandhi, Corporate Chairman of GMR Group said "The acquisition of additional stake in DIAL is in line with our objective of consolidating our presence in core assets of the Group and signifies the importance of Delhi airport in the overall Group portfolio."

Fraport being a holder of 10% equity stake in DIAL, would be related party to DIAL and accordingly in terms of SEBI Regulations, the proposed transaction is a related party transaction for GIL and meets the requisite RPT norms. DIAL is currently a subsidiary of the Company. Other than the direct shareholding of the Company and the indirect shareholding by its Promoters, GMR Enterprise Private Limited and Aeroports de Paris S.A, in DIAL, the promoters or promoter group do not have any other interest in DIAL.

Shares of GMR Infrastructure Limited was last trading in BSE at Rs. 90.90 as compared to the previous close of Rs. 91.06. The total number of shares traded during the day was 1433583 in over 17852 trades.

The stock hit an intraday high of Rs. 91.37 and intraday low of 89.24. The net turnover during the day was Rs. 129070224.00.

Source : Equity Bulls

Keywords

GMRAirportsInfrastructure INE776C01039 AirportServices SPA FraportAGFrankfurt MinorityStake DIAL