India’s GMR Infrastructure late yesterday announced a change of buyer for 49% of its airports business, saying France´s Groupe ADP has now agreed to acquire the stake for INR 107.8bn (USD 1.5bn).
This is a turnaround from its previous plan to offload the stake to a consortium made up of India’s Tata Realty and Infrastructure Urban Transport, as well as affiliates of Singapore investment company GIC and Hong Kong-based SSG Capital Management.
A GMR spokesperson confirmed to Inframation that the previous agreement has been called off.
“GMR was working closely with Tata, GIC and SSG on the proposed investment in GMR Airports,” a GMR spokesperson told this news service today. “However, as Groupe ADP has since submitted a bid at a higher valuation, and due to other strategic reasons, the company has decided to transact with Groupe ADP.”
The deal with the French company values GMR Airports at INR 220bn. The transaction will include a INR 10bn equity injection and the acquisition of INR 97.8 secondary shares held by the GMR Group. A first tranche of INR 52.5bn will be received by GMR Group immediately, allowing the Indian conglomerate to reduce its debt and improve its cash flows and profitability, the statement said.
The Tata-GIC-SSG proposal had valued the company at INR 190bn.