Left Menu
Development News Edition

Now GMR Infra to sell 49 pc stake in airport biz to Tata Group subsidiary

PTI | New Delhi | Updated: 16-01-2020 19:49 IST | Created: 16-01-2020 19:49 IST
Now GMR Infra to sell 49 pc stake in airport biz to Tata Group subsidiary

GMR Infrastructure on Thursday said it will sell 49 per cent stake instead of 44.44 per cent in its airport business to Tata Group subsidiary TRIL Urban Transport, as the group continues with efforts to trim its debt. The diversified group has decided to increase the quantum of stake sale nearly 10 months after announcing the deal, which also received green signal from the Competition Commission of India (CCI)in October last year.

In a filing to the stock exchanges, GMR Infrastructure said it has decided to "increase the transaction size by agreeing to divest 49 per cent in GMR Airports Limited (vs previously agreed 44.44 per cent) to TRIL Urban Transport Private Limited (part of TATA Group), an affiliate of GIC and SSG Capital Management... in one or more tranches". The deal would be subject to regulatory approvals.

An amended and restated Shares Subscription and Purchase Agreement and Shareholders Agreement has been executed for the revised deal, according to the filing. GMR Group operates airports in New Delhi and Hyderabad. It also has stakes in Mactan-Cebu airport in the Philippines and Crete aerodrome in Greece.

The transaction involves offloading stake in GMR Airports to TRIL Urban Transport Pvt Ltd, Valkyrie Investment and Solis Capital. Valkyrie is an affiliate of Singapore's sovereign wealth fund GIC, while Solis is an investment vehicle of the SSG Group.

In October, the CCI cleared the proposed transaction subject to certain modifications. According to the announcement made in March last year, the deal valued GMR Airports at over Rs 17,700 crore.

Post-deal, GMR Infrastructure and subsidiaries would hold around 54 per cent stake in the airport arm, the consortium of new investors would own close to 45 per cent and the remaining would be with an employees welfare trust, as per the announcement. Shares of GMR Infrastructure closed marginally lower at Rs 23.85 on the BSE.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION / BLOG / INTERVIEW

China: A savior for emerging markets or a poison pill?

... ...

Future of Urban Planning: Artificial Intelligence guiding the way

Advances in emerging technologies like Artificial Intelligence and Machine Learning can help us understand our cities better and derive useful insights from real-time data collected through automated models....

Videos

Latest News

China finds coronavirus cluster in major chicken processing plant

China reported its first cluster of COVID-19 cases among workers in a meat processing plant, raising fears among local consumers who have until now mainly worried about the safety of imported foods. Ten confirmed cases were found in a facto...

Migsun forms JV to develop 103 acre township in Gr Noida; to invest Rs 250 cr on 1st phase

Realty firm Migsun group has formed a joint venture with another builder to develop a 103-acre township in Greater Noida and will invest around Rs 250 crore to construct first phase of the project.Last month, Migsun had bought 37.5 acre IT ...

Euro zone business activity shrinks in January as lockdowns hit services

Economic activity in the euro zone shrank markedly in January as stringent lockdowns to contain the coronavirus pandemic hit the blocs dominant service industry hard.With hospitality and entertainment venues forced to remain closed across m...

Russia welcomes US proposal to extend nuclear treaty

The Kremlin on Friday welcomed US President Joe Bidens proposal to extend the last remaining nuclear arms control treaty between the two countries, which is set to expire in less than two weeks.Russian President Vladimir Putins spokesman, D...

Give Feedback