France’s Groupe ADP to sell 7.3% stake in GMR Airports

France’s Groupe ADP is selling up to 7.3 per cent stake in GMR Airports to the GMR promoter group for more than Rs 10,100 crore.

Once the multi-layered deal is complete, the overall stake of Groupe ADP, the Paris airport operator, in GMR Airports will come down to 25 per cent from 32.3 per cent.

GMR Airports Ltd (GAL), the airports business arm of the GMR Group, operates various airports, including at Delhi and Hyderabad. 

Groupe ADP has entered into agreements for sale of its securities representing 7.3 per cent stake in GAL to the GMR promoter group, according to a statement issued by the French group. 

The deal will be executed through an initial sale and entry into options relating to ordinary or preference shares as well as the early purchase by GMR Group of the convertible bonds issued by GAL and currently held by Groupe ADP. “The overall cash proceeds generated by this transaction are estimated to be 924 million euros,” the French group said in a statement on Thursday. At current exchange rates, 924 million euros translates to around USD 1.08 billion or over Rs 10,100 crore.

There was no comment from the GMR Group on the transaction. 

Currently, GMR promoter group holds 34.9 per cent in GAL and the holding will rise to 42.2 per cent post the deal. While Groupe ADP’s stake will come down to 25 per cent, the public shareholding in GAL will remain at around 32.8 per cent.

Under the deal, Groupe ADP sold 3.4 per cent of GAL’s ordinary equity shares for 256 million euros on Thursday. 

GMR promoter group has call options and Groupe ADP a corresponding put option exercisable to purchase and sell, respectively, securities representing 3.9 per cent of GAL’s ordinary equity shares for an estimated 285 million euros. Any sale resulting from the exercise of these options should be completed by April 30, 2027.

Also, the early purchase by GMR Group of the convertible bonds (FCCBs) for a nominal (face) value of 301 million euros, plus accrued interest at the date of the transaction is to be completed by March 31, 2027, the statement said. 

“Upon completion of the transaction, Groupe ADP’s governance rights in GAL and its co-promoter status will remain unchanged.

This transaction, by rebalancing the economic exposure of GMR Group and Groupe ADP in GAL, bolsters this partnership and enhances the company’s position for future development, without the need for any additional capital injection,” it said.  Groupe ADP said the transaction is part of its strategy to optimise the financial contribution of its international assets and added that it does not intend any further divestment of its stake in GAL and is engaged in a balanced long-term partnership. 

In 2020, Groupe ADP snapped up a 49 per cent stake in GAL, which was then a subsidiary of GMR Infrastructure Ltd (GIL), for around 1.3 billion euros.

Later, in July 2024, GAL was listed as a separate entity on the Indian bourses after a restructuring of GIL.