GMR Airports Infrastructure (GIL) recently announced a share purchase agreement with Fraport AG to acquire its 10% stake in Delhi International Airport (DIAL) for USD 126 million. This deal will increase GIL's stake in DIAL from 64% to 74%, with the Airports Authority of India (AAI) retaining a 26% share. The transaction is pending approval from AAI and GIL's shareholders and is expected to close within 180 days. BS Raju of GMR Group acknowledged Fraport's significant technical support and partnership. The acquisition is deemed a related party transaction under SEBI regulations, with no other promoter interests in DIAL.
GMR Airports Infrastructure (GIL), the airport business arm of the GMR Group, recently announced that it has reached a share purchase agreement with Fraport AG Frankfurt Airport Services Worldwide to acquire Fraport's 10% stake in Delhi International Airport (DIAL) for USD 126 million. Upon finalizing the transaction, GIL's ownership in the joint venture will increase from 64% to 74%. The Airports Authority of India (AAI) will maintain its 26% stake in the venture.
GMR Airports Infrastructure (GIL) announced that it has entered into a share purchase agreement with Fraport AG Frankfurt Airport Services Worldwide (Fraport) to acquire Fraport's 10% minority equity stake in Delhi International Airport (DIAL) for a total of USD 126 million. The company stated that the acquisition aligns with its strategy to strengthen its position in core assets and underscores the significance of Delhi airport within the group's portfolio. G Kiran Kumar Grandhi, the corporate chairman of GMR Group, noted that this move reflects their commitment to consolidating their presence in key assets.
The transaction is contingent upon receiving approval from the Airports Authority of India (AAI) and GIL's shareholders, with the deal anticipated to be finalized within 180 days from the signing of the share purchase agreement. BS Raju, the business chairman for airports at GMR Group, noted that Fraport, as one of the original shareholders, has been a key partner in their airport business journey and has provided significant technical support to Delhi Airport in its role as an operator.
The company indicated that since Fraport holds a 10% equity stake in DIAL, it will be considered a related party to DIAL. Consequently, under SEBI regulations, the proposed transaction qualifies as a related party transaction for GIL and complies with the necessary RPT norms. Additionally, apart from the direct shareholding by the company and the indirect shareholding through its promoters, GMR Enterprise and Aeroports de Paris SA, the promoters or promoter group have no other interests in DIAL.
GMR Airports Infrastructure's decision to acquire Fraport's 10% stake in Delhi International Airport underscores its strategic focus on consolidating ownership in key assets. This move, once approved by the Airports Authority of India and GIL's shareholders, will not only strengthen GIL's position in the airport business but also reflect its commitment to maintaining Delhi Airport as a pivotal part of its portfolio. With the acquisition expected to be completed within 180 days, GMR Group is poised to further enhance its role in India's aviation sector.
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