pennews
www.pennews.net
GMR Infra signs with Tata Group for investment in Airports business
Business

GMR Infra signs with Tata Group for investment in Airports business

Agency News

Mumbai, Jul 5 : GMR Infrastructure Limited (GIL) said that company has executed Share Subscription and Purchase Agreement (SPA), Shareholders Agreement and other related Transaction documents (collectively known as 'definitive agreements') with TRIL Urban Transport Private Limited (part of Tata Group), an affiliate of GIC and SSG Capital Management for a proposed investment of Rs 8,000 Crores in GMR Airports Limited (GAL), a Subsidiary of the Company.

The proposed investment amount of Rs 8,000 Crores will consist of Rs 1,000 Crores equity infusion in GAL and Rs 7,000 Crores towards purchase of GAL's equity shares from GIL and its Subsidiaries, the company said in a filing with BSE.

The Company along with its affiliates (GMR) and the Investors had signed a Binding Term Sheet in respect of the Transaction on 26th March, 2019, and execution of definitive documents is in continuation of the same. The Parties had already initiated the process of obtaining the necessary regulatory approvals after signing the Binding Term Sheet and are in the process of satisfying the necessary conditions precedent in order to achieve an expeditious closure of the Transaction.

GMR will now focus on potential restructuring of the business by way of a demerger of its Energy, Highways, Urban Infrastructure & Transportation businesses, leading to separation of its Airport Business, subject to customary consents including corporate & regulatory approvals.(UNI)