GAL signed a concession agreement with Kannur International Airport Limited (KIAL) last month.

Paris airports operator, Groupe ADP will take a 49% stake in the airports division of GMR Infrastructure Limited (GIL) in what the companies call ‘a strategic partnership’.

GIL has signed a Share Purchase Agreement pursuant with Groupe ADP which will take a 49% stake in GMR Airports Limited (GAL) for approximately INR107.8bn/$1.5bn (Rs. 10,780 Crore), valuing GAL at INR220bn/$3bn (Rs. 22,000 Crore). The first payment of INR52.5bn/$731m (Rs. 5,248 Crore) will be transferred by Groupe ADP immediately.

As reported last month, GAL signed a concession agreement with Kannur International Airport Limited (KIAL) to develop, operate, maintain and manage the duty free outlets at Kannur International Airport on an exclusive basis.

This was the first duty free concession outside of GMR’s pre-existing airport portfolio, which includes Indira Gandhi International Airport in New Delhi, Hyderabad’s Rajiv Gandhi International Airport in addition to Mactan Cebu International Airport in partnership with Megawide in Philippines.

‘FIRST OF ITS KIND NEW PLATFORM’

Once the new transaction is complete, GMR will retain management control over its airports business with Groupe ADP reserving customary rights and Board representation at GAL and ‘its key subsidiaries’.

Groupe ADP designs, builds and manages the three most important Parisian airports: Paris-Charles de Gaulle, Paris-Orly and Paris-Le Bourget.

“The deal will unveil a first of its kind airport development and operations platform globally,” insisted GMR.

“Together, GMR and Groupe ADP will combine unmatched strengths in airport development and operations, offering the highest levels of passenger experience.  This will also open up new opportunities for route development, enhanced expertise in operations, retail, IT, innovation, engineering and many more areas.”

GM Rao, Chairman, GMR Group.

According to 2019 passenger statistics, the total number of passengers served by GMR Airports and Groupe ADP stood at 336.5m.

GLOBAL AMBITIONS

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.”

Augustin de Romanet Chairman and CEO of Aéroports de Paris SA-Groupe ADP. ©Gerard Uferas ADP.

Augustin de Romanet Chairman and Chief Executive Officer of Aéroports de Paris SA-Groupe ADP stated: “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 a 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.”