GMR Airports to buy 10% additional stake in Delhi Airport for $126mn
Airport operator Fraport sells stake, transaction expected to be concluded within 180 days.
GMR Airports Infrastructure (GIL) has signed a share purchase agreement with Fraport AG Frankfurt Airport Services Worldwide (Fraport) for buying its current minority 10 percent equity stake in Delhi International Airport (DIAL), a subsidiary of GIL.
The acquisition would be for a negotiated aggregate consideration of $126 million, says a regulatory filing by GIL.
"GIL currently holds 64 percent of the paid-up capital of DIAL, and stake would increase to 74 percent, post the acquisition. Airports Authority of India (AAI) continues to hold a 26 percent equity stake in DIAL. Post the transaction, Fraport’s appointment as the airport operator of DIAL shall continue to be governed by the Airport Operator Agreement and/or any other agreement(s) executed in relation to its role as the airport operator."
The transaction, subject to AAI’s approval and approval of GIL Shareholders, along with customary closing conditions are expected to be concluded within 180 days, the release added.
“Fraport has been one of the original shareholders and have been our partners in Airport journey," says G. B.S. Raju, Business Chairman (Airports), GMR Group. "They have extended significant technical support to Delhi Airport as per their role as airport operator.”
Kiran Kumar Grandhi, Corporate Chairman, GMR Group adds: “The acquisition of additional stake in DIAL is in line with our objective of consolidating our presence in core assets of the Group and signifies the importance of Delhi airport in the overall Group portfolio.”
GMR Airports Infrastructure reported revenue from operations of Rs 2,402 crore for the first quarter of financial year 2024-25, an increase of 19 percent from the same period last year. Net loss came in at Rs 337 crore as against a profit of Rs crore in Q1FY2024.
