GMR Airports Infrastructure, the erstwhile GMR Infra Ltd., has announced a Composite Scheme of Amalgamation and Arrangement of GMR Airports (GAL) with GMR Airports Infrastructure. Post the completion of the merger, GMR Airports Infra will continue as a listed public entity.

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The merger is expected to be completed within the next financial year following relevant approvals.

GMR Airports Infra will also raise Rs 2,900 crore from Groupe ADP via Foreign Currency Convertible Bonds (FCCBs), which will be due in 2033. The FCCBs will convert at a price of Rs 43.67, which is a premium of 10 percent to the FCCB regulatory floor price.

The proceeds from this fundraise will be utilised in repaying corporate debt and settle most of the contingent liabilities related to GMR Power and Urban Infra.

GMR Airports Infra entered into a strategic partnership with Groupe ADP in early 2020, whereby Groupe ADP agreed to purchase a 49 percent stake in GMR Airports. At the time of the transaction, Groupe ADP had pegged equity earnouts of nearly 8 percent of GMR Airports and cash earnouts of Rs 1,060 crore to GMR Airports Infra.

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GMR Airports Infra & Groupe ADP will settle the cash earnouts to the former at Rs 550 crore and the equity earnouts whereby GMR Airports Infra Ltd.’s stake in GMR Airports Ltd. will increase to 55 percent from 51 percent pre-merger.

Upon completion of the merger, GMR Group will remain the single largest shareholder of GMR Airports Infra, with a 33.7 percent stake, Groupe ADP will hold 32.3 percent, while the remaining 34 percent will be public shareholding.

Post the merger, the GMR Group would continue to have management control over the merged entity, while Groupe ADP will be categorised as co-promoters of GMR Airports Infra, and have commensurate board representation.

"Our strong partnership with Groupe ADP emanating from combined resources and expertise will enable the Company to capture fast-growing airport business opportunities and maintaining our leadership position in the airport business," GMR Group Chairman GM Rao was quoted as saying.

GMR Airports Infra was also part of CNBC-TV18's dealing room chatter on Friday, where Nimesh Shah reported on the company planning to raise funds through FCCBs through a large investor and also a potential corporate announcement with regards to a reverse merger.

Shares of GMR Airports Infra have risen 5 percent so far this year.

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(Edited by : Hormaz Fatakia)

First Published:Mar 20, 2023 8:35 AM IST