New Delhi [India], July 8 (ANI): GMR Infrastructure Limited has successfully completed the previously announced strategic partnership with Groupe ADP.
"The contours of the deal have however undergone slight modifications considering the unprecedented circumstances arisen due to the (COVID-19) pandemic," read a statement.
As per the revised share purchase agreement, the second tranche of the investment for 24.01 per cent of GMR Airports Limited has been structured in two parts - a firm amount, immediately paid at second closing, for a total of Rs 4,565 crore, including Rs 1,000 crore equity infusion in GMR Airports Limited; and earn-outs amounting to Rs 1,060 crore, subject to the achievement of certain performance related targets by GMR Airports Limited up to FY 2024.
Groupe ADP has increased earn-outs for GMR which are now pegged at up to Rs 5,535 crore compared to the earlier Rs 4,475 crore. These earn-outs are linked to the achievement of certain agreed operating performance metrics as well as the receipt of certain regulatory clarifications over the next five years.
"The amount of Rs 4,565 crore towards second and final tranche payment from Groupe ADP has been received. This money will primarily be used in servicing the debt which will help deleverage GMR Group further and result in improved cash flows and profitability," the statement further read.
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 GMR Airports Limited and its key subsidiaries.
The statement further noted that the partnership between GMR and Groupe ADP is being structured as a "strong strategic partnership to be built on two-way exchange of expertise, personnel, knowledge and market access."
Passengers and other stakeholders will also benefit immensely and thereby setting newer industry-defining benchmarks, it added. (ANI)