GMR tweaks airport deal with ADP as COVID-19 pummels aviation

GMR Infrastructure Limited has modified a deal to sell a stake in its airports arm to French company Groupe ADP after the COVID-19 pandemic grounded flights worldwide. In February 2020, GMR Infrastructure had agreed to divest a 49 per cent stake in GMR Airports Limited to Groupe ADP for Rs 107.8 billion ($1.5 billion then) in two stages. However, GMR has now tweaked the second stage of the deal. While the first stage involved the sale of a 24.99 per cent stake for Rs 52.48 billion, the second phase was for the divestment of a 24.01 per cent stake for the remaining amount. The second stage included a primary infusion of Rs 10 billion. The February 2020 deal also included GMR receiving as much as Rs 44.75 billion from Groupe ADP as earnouts depending on achievement of operating performance metrics and on receipt of regulatory clarifications over the next five years. As per the revised deal, Groupe ADP has now paid Rs 45.65 billion, including primary capital, to GMR. It has also increased the amount of the earnouts by Rs 10.6 billion, to Rs 55.35 billion from Rs 44.75 billion. This means that the total base size of the deal, excluding the earnouts, has decreased to Rs 97.2 billion ($1.3 billion).