Key Points of GMR Airports Merger with Subsidiary:
- GMR Airports Infrastructure Limited has approved a composite scheme of amalgamation and arrangement with GMR Airports Limited in a merger.
- The merger is set to raise ₹2,900 crore from Aéroports de Paris SA through a 10-year FCCB.
- GMR Group will remain the single largest shareholder and in management control of GIL.
- The merger will simplify the capital structure of the unlisted company and allow it to capture new business opportunities more easily.
- The merger is set to take place in the first half of 2024.
- ADP will invest €331 million in foreign currency convertible bonds issued by GMR Airports Infrastructure, with the proceeds used to clear GMR’s balance sheet by repaying corporate debt and settling a major part of its liabilities.
- The demand for air travel has picked up substantially, which will speed up airport privatization initiatives of the respective governments across the world.
Details of GMR Airports Merger with Subsidiary:
GMR Airports Infrastructure, formerly known as GMR Infrastructure, has approved a composite scheme of amalgamation and arrangement with GMR Airports Limited (GAL) in a merger. The move is set to raise ₹2,900 crore from Aéroports de Paris SA (Groupe ADP) through a 10-year FCCB.
GMR Group will remain the single largest shareholder and in management control of GIL. The merger will simplify the capital structure of the unlisted company and allow it to capture new business opportunities more easily, according to the companies. The merger is set to take place in the first half of 2024.
Aéroports de Paris and GMR Airports Infrastructure Ltd. own 49% and 51%, respectively, of the unlisted GMR Airports Ltd. Combining GMR Airports Infrastructure and GMR Airports will give ADP a liquid stake in a business that owns airfields in India.
ADP will invest €331 million ($353 million) in foreign currency convertible bonds issued by GMR Airports Infrastructure. The proceeds will be used to clear GMR’s balance sheet by repaying corporate debt and settling a major part of its liabilities.
In a separate statement, GMR said that the demand for air travel has picked up substantially, which will speed up airport privatization initiatives of the respective governments across the world. The investment will lead to a cash expense of the same amount in the coming weeks, ADP said.
Overall, the merger is expected to simplify the capital structure of the unlisted company and help it capture new business opportunities. The demand for air travel is increasing, which should speed up airport privatization initiatives around the world.
About GMR Group:
GMR Group, a multinational conglomerate, is based in New Delhi, India. Grandhi Mallikarjuna Rao founded the group in 1978, which includes various companies such as GMR Infrastructure, GMR Energy, GMR Airports, and GMR Enterprises.
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