The terms have been tweaked because of COVID-19 disruption
GMR Infrastructure, which operates the Delhi airport, has completed its deal with French player Groupe ADP, though with terms tweaked because of the COVID-19 pandemic.
As per the revised Share Purchase Agreement, the second tranche of investment for 24.01 percent of GMR Airports has been structured in two parts:
One, a firm amount, immediately paid at second closing, for a total of Rs 4,565 crore, including Rs 1,000 crore equity infusion in GMR Airports.
Second, earn-outs amounting to Rs 1,060 crore, subject to the achievement of certain performance related targets by GMR Airports up to FY24.
"Accordingly, Groupe ADP has increased earn-outs for GMR, which are now pegged at up to Rs 5,535 crore compared to the earlier Rs 4,475 crore. These earn-outs are linked to the achievement of certain agreed operating performance metrics as well as the receipt of certain regulatory clarifications over the next five years," GMR said in a statement late July 7.
This money will primarily be used in servicing the debt which will help deleverage GMR Group further and result in improved cash flows and profitability.
As part of the terms of transaction, GMR will retain management control over the Airports Business with Groupe ADP having the customary rights and Board representation at GMR Airports and its key subsidiaries.