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GMR receives Rs 5,248 cr from Groupe ADP

Feb 26, 2020, 16:04 IST
PTI
New Delhi, Feb 26 () GMR Infrastructure on Wednesday said it has received Rs 5,248 crore from Groupe ADP as part of a deal wherein the French major is buying 49 per cent stake in the domestic group's airport business.

On February 21, it was announced that Groupe ADP would acquire 49 per cent stake in GMR Airports Ltd (GAL) for Rs 10,780 crore.

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In a filing to stock exchanges on Wednesday, GMR Infrastructure said the group has received Rs 5,248 crore towards first tranche of payment from Groupe ADP.

"The end utilisation of monies has been mainly for corporate debt reduction. Further, GMR Group has provided exit to the existing private equity investors in GMR Airports Ltd," it added.

The deal would help the group to reduce its debt burden.

As per an investor presentation, a copy of which was filed to the stock exchanges, the deal would help in "significant deleveraging at GMR Infrastructure Ltd using the equity raise" as well as result in "improved cash-flow and profitability"

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Aeroports de Paris SA (ADP) would buy 100 per cent stake in GMR Infra Services Ltd and then 49 per cent shareholding in GAL. GMR Infra Services is an operating and holding company. Its primary business is to hold shares in GAL.

Shares of GMR Infrastructure dropped 4.50 per cent to close at Rs 24.40 on the BSE on Wednesday.

Competition Commission has given its nod for the deal under the green channel, which allows for an automatic system for speedy approval of combinations, subject to certain conditions. RAM DRRDRR

(This story has not been edited by www.businessinsider.in and is auto–generated from a syndicated feed we subscribe to.)
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