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G.M. Rao’s GMR Vehicle to Buy Up to 7.3% of GMR Airports From Groupe ADP for €924 Million

The sale unlocks cash for ADP’s deleveraging without giving up its co-promoter role.

Overview

  • ADP said it will sell up to 7.3% of GMR Airports to a GMR family vehicle in a package valued at up to €924 million, with completion expected by March 31, 2027.
  • The structure includes an immediate 3.4% sale for €256 million, a put option for a further 3.9% at about €285 million, and a €301 million purchase of bonds that convert into shares.
  • After the transactions close, GMR Group’s holding would rise to 43.3% and ADP’s would fall to 22.7%, with ADP retaining governance rights as a co-promoter.
  • ADP plans to use the proceeds to cut debt and has proposed a €0.8 per share special dividend for the 2025 financial year, with a possible extra €1 if the option is exercised.
  • GMR Airports’ shares fell as much as 1.7% in Mumbai trading after the announcement, and ADP noted the sale reflects a valuation about four times its 2020 entry at €1.3 billion.