GMR Infra to sell 49%
in airports unit to Tatas
GMR Group will sell 49% in its airports business to TRIL Urban Transport Pvt. Ltd. (part of the Tata Group), an affiliate of GIC and SSG Capital Management, compared with the 44.44% agreed upon earlier.
TRIL Urban Transport Private Ltd. has executed an amended and restated share subscription and purchase agreement and shareholders agreement with GMR Infrastructure to increase the transaction size.
“This transaction is expected to fetch GMR Infrastructure about ₹9,000 crore. Most of the proceeds will go towards repayment of debt,” sources told The Hindu. “Of the entire proceeds, ₹1,000 crore will go Delhi Airport International Limited and the rest will go towards repayment of corporate debt,” said the source.
The firm “has decided to increase the transaction size by agreeing to divest 49% in GMR Airports Limited in one or more tranches, such closings being subject to regulatory approvals,” said GMR Infrastructure in a statement.
The company has a net debt of ₹23,900 crore as on September 2019 and is looking to deleverage by selling non- core assets.
GMR Infrastructure shares touched their 52-week high of ₹25 after the announcement before closing down 0.42% to ₹23.85 in a firm Mumbai market on Thursday, valuing the company at ₹14,395.73 crore.
“This is another step in our endeavour to deleverage and demonstrate our commitment towards the same,” the statement added.
In October, 2019, India’s competition watchdog, the Competition Commission of India had cleared the deal with certain modifications.
The company is engaged in power generation, mining and exploration activities, development of highways, infrastructure development, such as development and maintenance of airports and special economic zones.
The company currently owns and operate Delhi and Hyderabad international airports in India.
Besides selling significant stake in airport, the company has completed the sale of GMR Chhattisgarh Energy Ltd. to Adani Power and is in advance discussion with JSW Energy to sell its Kamalanga Power Plant for close to ₹4,000 crore.
