MUMBAI :

Groupe ADP, formerly known as Aéroports de Paris or ADP, an international airport operator based in Paris, will hold 49 percent stake in GMR Airports Limited (GAL), GMR Infrastructure Limited (GIL), the parent of the airport company said in a statement late on Thursday.

"GIL has signed a Share Purchase Agreement pursuant to which Groupe ADP will hold 49 percent stake in GMR Airports Limited (GAL) for an equity consideration of Rs. 10,780 Crore, valuing GAL at the Base Post Money Valuation of Rs. 22,000 Crore," GIL added.

"This equity consideration comprises of -- Rs. 9,780 crore towards secondary sale of shares by GMR Group and ?1,000 Crore equity infusion in GAL," the company said adding that Groupe ADP has also pegged earn-outs up to Rs. 4,475 Crore linked to achievement of certain agreed operating performance metrics as well as on receipt of certain regulatory clarifications over next 5 years.

The company said that the total valuation assuming all above earn-outs are successfully consummated, may reach Rs. 26,475 crore.

The first tranche of Rs. 5,248 crore will be received by GMR Group immediately, which will be utilised to deleverage the Group's massive debt.

"As part of the terms of transaction, GMR will retain management control over the Airports

Business with Groupe ADP having the customary rights and Board representation at GAL and its key subsidiaries," GIL added in the statement.

GMR Airports owns and operates Delhi International Airport. It also runs the Hyderabad International Airport.

Mint had in January reported that a Tata Group-led consortium is likely to rejig its investment in GMR Airports Ltd, after GMR decided to dilute its stake in its airport arm by 49% in order to meet the regulatory requirement of 10% shareholding cap for Tata Group in Delhi International Airport Ltd (DIAL).

However, Mint now understands, the deal of GMR Group deal with Tata Group has been scrapped for its airports business, according to the sources.

In March 2019, GMR had announced that the Tata Group, GIC and Hong Kong-based SSG Capital Management will co-invest in its airports business in a ratio of 44:33:22. Out of the total investment, ?1,000 crore will come as equity infusion into GAL, which will be used to retire its debt.

Last October, the Competition Commission of India (CCI) had cleared the deal. However, the Airports Authority of India (AAI) sought the opinion of the Solicitor General of India on the legality of Tatas plan to take a majority stake in GMR Airports.

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