Tata, GIC, SSG to buy stake in GMR's airport unit
GMR Infrastructure on Wednesday said Tata Group, along with an affiliate of Singapore's sovereign wealth fund "GIC" and SSG Capital Management, would invest Rs 8,000 crore in GMR Airports Ltd (GAL).
The investment marks the entry of the Tata Group into the airport business.
GMR Infrastructure has signed a "binding term sheet" with the investors pursuant to which the investors have agreed to invest the amount in the airport business, the company said in a regulatory filing.
"The investment amount of Rs 8,000 crore will consist of Rs 1,000 crore equity infusion in GAL and Rs 7,000 crore towards purchase of GAL's equity shares from GIL and its subsidiaries," it said.
After the investment, GMR Infrastructure and its subsidiaries will hold 54 per cent stake in GAL, Tatas will hold 20 per cent stake, GIC will hold 15 per cent, SSG will hold 10 per cent, and Employee Welfare Trust will have 2 per cent.
Following the investment, GMR Infrastructure proposes to separate its energy, highways, urban infrastructure and transportation businesses, leading to the separation of its airport business, subject to customary consents, regulatory and corporate approvals, the company said.
As per terms of the proposed investment, GMR Infrastructure will retain management control over the airports business and the investors would have customary rights and board representation at GAL and its key subsidiaries.
Read More News:
Huawei eyes 10% premium smartphone share in India
Faircent.com Discloses Its Latest Research & Analysis Report