Groupe ADP has agreed to sell up to 7.3% of its stake in GMR Airports Ltd in a multi-stage transaction valued at as much as €924 million ($1.08 billion), while retaining its co-promoter status and governance rights in the company.
The French airport operator will offload the stake to a vehicle linked to GMR’s founding family. As part of the agreement, ADP will sell an initial 3.4% stake for €256 million and has secured a put option to divest an additional 3.9% for about €285 million at a later stage.
Also Read: GMR Airports shares in focus after firm reports muted Q4 traffic growth, cites multiple headwinds
Separately, the family’s investment vehicle will purchase convertible bonds worth €301 million in face value, along with accrued interest up to the transaction date. The deal is expected to be completed by March 31, 2027.
Despite the partial stake sale, ADP said it does not intend to reduce its holding further and will continue to play a key role in the company’s governance.
“ADP is taking the opportunity to crystallise part of the value of its investment, while maintaining a significant economic exposure to the future growth potential of this key asset,” ADP Chief Executive Officer Philippe Pascal said in the statement.
Also Read: GMR Airports to develop cargo city at Delhi airport
ADP had originally acquired a 49% stake in GMR Airports in 2020, marking a significant entry into India’s fast-growing aviation infrastructure sector.
The proceeds from the transaction will be used for short-term deleveraging and to fund shareholder returns. ADP’s board has proposed a special dividend of €0.8 per share for the 2025 financial year, with the possibility of an additional €1 per share distribution following the exercise of the put option.
In Mumbai trading on Friday, shares of GMR Airports fell as much as 1.7%, extending their decline this year to around 10%, broadly in line with the BSE Sensex. The company currently has a market capitalisation of about $10.7 billion.
Citigroup Inc. acted as financial adviser to ADP on the transaction, while S&R Associates and Hogan Lovells served as legal advisers. Urban Strategic Pte was the strategic adviser, according to the statement.
The French airport operator will offload the stake to a vehicle linked to GMR’s founding family. As part of the agreement, ADP will sell an initial 3.4% stake for €256 million and has secured a put option to divest an additional 3.9% for about €285 million at a later stage.
Also Read: GMR Airports shares in focus after firm reports muted Q4 traffic growth, cites multiple headwinds
Separately, the family’s investment vehicle will purchase convertible bonds worth €301 million in face value, along with accrued interest up to the transaction date. The deal is expected to be completed by March 31, 2027.
Despite the partial stake sale, ADP said it does not intend to reduce its holding further and will continue to play a key role in the company’s governance.
“ADP is taking the opportunity to crystallise part of the value of its investment, while maintaining a significant economic exposure to the future growth potential of this key asset,” ADP Chief Executive Officer Philippe Pascal said in the statement.
Also Read: GMR Airports to develop cargo city at Delhi airport
ADP had originally acquired a 49% stake in GMR Airports in 2020, marking a significant entry into India’s fast-growing aviation infrastructure sector.
The proceeds from the transaction will be used for short-term deleveraging and to fund shareholder returns. ADP’s board has proposed a special dividend of €0.8 per share for the 2025 financial year, with the possibility of an additional €1 per share distribution following the exercise of the put option.
In Mumbai trading on Friday, shares of GMR Airports fell as much as 1.7%, extending their decline this year to around 10%, broadly in line with the BSE Sensex. The company currently has a market capitalisation of about $10.7 billion.
Citigroup Inc. acted as financial adviser to ADP on the transaction, while S&R Associates and Hogan Lovells served as legal advisers. Urban Strategic Pte was the strategic adviser, according to the statement.
