HYDERABAD: Amid reports that the Tata Group is among the front-runners to buy cash-starved Jet Airways, airports major GMR Infrastructure on Tuesday said the Mumbai-headquartered conglomerate along with Singapore’s sovereign wealth fund GIC and SSG Capital Management have picked up a 45 per cent stake in its airports vertical GMR Airports, pumping in around Rs 8,000 crore.
The proposed investment in GMR Airports comprises Rs 1,000 crore capital infusion in the airports business and Rs 7,000 crore for equity stake acquired from GMR’s parent company and its subsidiaries. According to the agreement, the new investors will have board representation in GMR Airports and its key subsidiaries, while the parent entity GMR Infra will retain management control. The deal pegs GMR Airports at Rs 18,000 crore and includes earn-outs of up to Rs 4,475 crore linked to the achievement of certain agreed milestones and performance metrics over the next five years.
In line with its earlier proposal, GMR Infra will proceed with plans to de-merge its energy, highways, urban infrastructure and transportation businesses, and hive off the airport business, subject to approvals. The investment will reduce GMR’s debt substantially, said Grandhi Kiran Kumar, MD & CEO, GMR Infra.
Rs 8,000 crore to be pumped in Tata Group will hold 20 per cent, GIC 15 per cent and SSG 10 per cent stake in GMR Airports. GMR currently operates airports in Delhi, Hyderabad and Cebu (Philippines), and is developing greenfield airports in Goa and Greece