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A consortium of India’s Tata Group, a unit of Singapore’s sovereign wealth fund GIC and SSG Capital Management will invest 80 billion rupees ($1.2 billion) to buy a stake in GMR Airports, which runs India’s biggest airport.
The deal will pump 10 billion rupees into GMR Airports, a unit of GMR Infrastructure, and purchase 70 billion rupees of the airport unit’s equity shares from the parent, according to a statement. GMR operates Delhi International Airport, Asia’s sixth biggest.
After the purchase, Tata will hold 20 percent in the airport unit, while GIC will get 15 percent and SSG will own 10 percent, the company said in a filing. The deal values GMR Airports at 180 billion rupees.
The deal marks Tata’s entry into the airports business amid a one trillion-rupee-plan by Prime Minister Narendra Modi to develop airfields in India’s remote towns and villages. Tata, which owns two local airlines, follows billionaire Gautam Adani’s bet on the sector after his firm won bids to operate six local airports last month.
GMR Infrastructure, which has net debt of $2.9 billion at the end of December 2018, has been selling assets to pay off liabilities. GMR competes with GVK Power & Infrastructure, which runs the airport in the financial capital of Mumbai.
GMR also operates airports in Hyderabad and Cebu, while it is developing greenfield airports in Goa and Crete, Greece.
©2019 Bloomberg L.P.
This article was written by Anurag Kotoky from Bloomberg and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.
Photo Credit: ndira Ganthi International Airport, New Delhi. Bloomberg.
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