French airport operator Groupe ADP to acquire 49% of GMR airports

February 21, 2020: GMR Infrastructure (GIL) signed a share purchase agreement on Thursday by which Groupe ADP will hold 49% stake in GMR Airports (GAL) for an equity consideration of Rs 10,780 crore, valuing GAL at the Base Post Money Valuation of Rs 22,000 crore.

As per 2019 passenger statistics, the combined passengers handled by GMR Airports and Groupe ADP stands at 336.5 million, the highest across the world.

This equity consideration comprises of:
• Rs. 9,780 Crore towards the secondary sale of shares by GMR group; and
• Rs. 1,000 Crore equity infusion in GAL.

GM Rao, chairman, GMR Group said, “The partnership with Groupe ADP is in line with GMR’s business direction to become a global airport developer and operator. We have been on a journey of defining airports of the future with key focus on passenger experience by leveraging enhanced technology and offering superior amenities. With Groupe ADP, GMR will have smoother access to global markets, opening up newer avenues of business growth.”

With the acquisition of 49% of the indian group #GMRAirports, @GroupeADP creates the leading global network of #airports https://t.co/TkPbH5kvOb pic.twitter.com/1j8KoktWdr

— Groupe ADP (@GroupeADP) February 20, 2020

“Groupe ADP has also pegged Earn-outs up to Rs. 4,475 Crore linked to achievement of certain agreed operating performance metrics as well as on receipt of certain regulatory clarifications over next 5 years. Thereby, total valuation assuming all above Earn-outs are successfully consummated, may reach Rs. 26,475 Crore on Post Money Basis,” said the release.

GMR Group will receive Rs 5,248 crore immediately. This money expected to help deleverage the group further and result in improved cash flows and profitability.

As part of the terms of the transaction, GMR will retain management control over the Airports Business with Groupe ADP having the customary rights and board representation at GAL & its key subsidiaries.

Augustin de Romanet, chairman and chief executive officer, Aéroports de Paris SA-Groupe ADP said "The acquisition of a 49% stake in GMR Airports fits within Groupe ADP's strategy. It sets a robust industrial partnership and enables Groupe ADP to build, only two years after taking control of TAV Airports, a unique worldwide network of airports with solid industrial expertise and strong development capacities. This acquisition will constitute a growth driver in the medium term, and also a transforming position for the group in one of Asia's and the world's most dynamic and promising countries."

Groupe ADP
Drawing on 70 years of experience, Groupe ADP carry out the principal businesses in the airport value chain – financing, designing and operating infrastructure – in France and abroad.
The group is a listed company on Euronext Paris the French stock exchange and the French State owns 50.6% of the equities shares.

In 2019, it handled a total traffic of 234.5 million passengers, including 108 million passengers through Paris Aéroport – a local brand which involves the three main airports of the Paris region: Paris-Charles de Gaulle (76.1 million passengers and the main gateway to France), Paris-Orly and Paris-Le Bourget – and 105.2 million passengers through the network of the Turkish TAV Airports (46.1%-owned) and also others traffic figures by others airports managed like Queen Alia in Amman (Jordan).

Including its overall activities and different subsidiaries, Groupe ADP is active over 125 airports among 50 countries.