S&R Associates represented Aéroports de Paris S.A. (Groupe ADP) on a proposed investment of Rs. 10,780 crores in GMR Airports Limited. The transaction involves an acquisition of an aggregate 49% stake in GMR Airports Limited in two tranches. The second tranche of the transaction is subject to approvals from regulatory authorities.According to a Press Release issued by Groupe ADP, it...
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S&R Associates represented Aéroports de Paris S.A. (Groupe ADP) on a proposed investment of Rs. 10,780 crores in GMR Airports Limited. The transaction involves an acquisition of an aggregate 49% stake in GMR Airports Limited in two tranches. The second tranche of the transaction is subject to approvals from regulatory authorities.
According to a Press Release issued by Groupe ADP, it has signed a share purchase agreement to buy, under certain conditions, a 49% stake in GMR Airports. The operation will unfold in two phases: a first phase will be realized within the coming days for a 24.99% stake. The second phase, for 24.01%, is subject to certain regulatory conditions, notably obtaining the customary regulatory approvals for that type of project, in particular from the Reserve Bank of India. It will be concluded during the upcoming months.
Once this operation completed, GMR Airports will be jointly owned with GMR Infrastructure Limited (GIL), listed entity of GMR Group, which will keep a 51% stake and retain control over the company. Groupe ADP will be granted highly extended governance rights.
GMR Airports – leading Indian airport group is a world-class airport operator operating in a dynamic region having a portfolio of world-class assets comprising seven airports in three countries (India, Philippines and Greece) and a subsidiary specialized in project management (GADL).
Regarding governance, Groupe ADP will be granted extended rights including the presence of board members at GMR Airports' board equal to that of GMR Infrastructure Limited board members. Groupe ADP will also have the right to appoint predetermined key executives within GMR Airports.
The Press Release also mentions that the financial operation includes a strategic industrial partnership with GMR regarding business development in aviation, retail, IT, hospitality, innovation and engineering. This operation also prepares Groupe ADP's future growth, with the existing assets, with the expected air traffic growth, the long run horizon of their concessions and the large capacity reserves, as well as the future acquisitions.
The S&R corporate team included partners Rajat Sethi and Mohit Gogia and associates Lakshmi Pradeep, Meher Mehta, Sushmita Sur, Anindhya Shrivastava, Ajatshatru Pandey, Yash Kumar, Shinjan Alok and Aashima Bhatia. Simran Dhir, head of competition practice, and associates Dhruv Agarwal and Ishika Rout advised on competition law matters.
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