GMR Infrastructure settles with Private Equity investors at Airport business

GMR Infrastructure announced that with respect to certain arbitration proceedings administered by the Singapore International Arbitration Centre, it has received the consent award from the arbitral tribunal based on the settlement agreement signed by it with private equity investors viz. SBI Macquarie, Standard Chartered Private Equity, JM Financial Old Lane and others (Investors), which had invested an amount of Rs.1478 crore in the form of Compulsorily Convertible Preference Shares (CCPS) in GMR Airports (GAL) in FY2011 & FY2012.

Pursuant to the settlement agreement, all parties decided to withdraw the ongoing arbitration and pursuant to binding agreements giving effect to the terms of the settlement the Investors (along with certain of their affiliates) would acquire 5.86% equity of GAL at a 100% valuation of Rs.21000 crore and receive a payment of Rs.3560 crore in lieu of their entire CCPS.

 

The cash payment would be partly funded by GIL through sale of its following airport related equity ownerships to GAL:
- Its entire shareholding of 40% in CEBU airport in Philippines at a 100% valuation of USD 590 million;
- Its entire shareholding of 50% in Clark EPC project in Philippines at a 100% valuation of USD 9.7 million;
h - Its entire shareholding of 40.1% in Delhi Airport Parking Services at a 100% valuation of Rs.499 crore.

The aforesaid shareholdings are being acquired by GAL based on valuations by Duff & Phelps. GAL would fund these acquisitions by a fresh issue of Non-Convertible Debentures of Rs.2005 crore subscribed by the Investors and/or certain of their affiliates.

The resultant shareholding of GAL would be as under:
GIL / its subsidiaries : 91.95%,
Employee Welfare Trust : 2.19%
Investors : 5.86%

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