NEW DELHI: Airport operator GMR Group on Friday said it will divest its entire 40% stake in Cebu international airport in the Philippines for an upfront payment of Rs 1,330 crore as well as earnouts to be received over a period of over four years.
Separately, the Board of GMR Infrastructure approved raising funds of up to Rs 6,000 crore via foreign currency convertible bonds or any other security. Another GMR group company, GMR Power and Urban Infra, on Thursday had approved raising funds of up to Rs 3,000 crore.
The funds will be used for infrastructure projects undertaken by the group. Group firm GMR Airports is developing airport cities on commercial land available around its airports in Delhi, Hyderabad, and Goa. Coming to its stake sale in Cebu Airport, GMR Airports International BV (GAIBV), a stepdown subsidiary of GMR Infrastructure (and direct subsidiary of GAL) has entered into agreements with Aboitiz InfraCapital (AIC), for AIC to acquire shares in GMR-Megawide Cebu Airport Corporation (GMCAC).
GMCAC, a joint venture between GAIBV and Megawide Construction Corporation (MCC), is a developer and operator of the Mactan Cebu International Airport (MCIA). As per a regulatory filing, the stake is being divested as part of the focus on deleveraging GMR Airports and churning assets for higher returns on investment.
“The transaction will be undertaken at an enterprise value of PhP49.7 billion (Rs 7,050 crore) and GAIBV will get an upfront amount of Rs 13.3 crore in lieu of the shares being transferred, and notes being issued,” the GMR filing said. PhP refers to Philippine Pesos. “We would continue to operate as the technical services provider to GMCAC till December 2026, (and) will be entitled to additional deferred consideration based on the subsequent performance of GMCAC for the same period.”
The deal details
The transaction will be undertaken at an enterprise value of PhP49.7 billion (Rs 7,050 crore) and GAIBV will receive an upfront amount of Rs 1,330 crore in lieu of the shares being transferred, and notes being issued