GMR Airports Infrastructure Limited (GIL) on Sunday announced the merger with GMR Airports Infrastructure Limited (GAL) through an exchange filing. GIL and Groupe ADP (Aeroports de Paris) that owns 49 per cent stake in GAL would settle the cash earnouts to GIL at Rs 550 crore and the equity earnouts where GIL's stake in GAL increases to 55 per cent from 51 per cent.
GAL, the existing Airport platform which is unlisted, will merge with GIL. GIL will also be raising Rs 2,900 crore from Groupe ADP through a 10 year 6.76 per cent p.a. coupon FCCBs due in 2033. The coupon of FCCBs will be accrued till the end of tenure and the conversion price is at Rs 43.67, which is 10 per cent premium to the FCCB regulatory price under the FCCB scheme.
The company in the exchange filing said, "Post the Covid pandemic, demand for air travel has picked up substantially which will speed up airport privatization initiatives of the respective Governments across the World. Merged GIL, with an improved Balance Sheet, will be in a much stronger position to further scale up the airport business by judiciously participating in profitable opportunities mainly in India, South Asia, South East Asia and Middle East."
Share holdings
Post the completion of the merger GMR Group will remain as the single largest shareholder of GIL with GMR Group holding 33.7 per cent and Groupe ADP owning 32.3 per cent and a public holding of 34 per cent.
According to the company it says that the merger will strengthen the relationship with Groupe ADP and with the fresh issuance of FCCB it will help reduce the cost of capital.
GMR Infrastructure shares
The shares of GMR Airports Infrastructure Limited on Monday at 10:48 am IST were at Rs 42.10, down by 1.41 per cent.
