Hyderabad: In what could be a precursor to the GMR group clearing the decks for taking its airports business public, GMR Infrastructure Ltd on Friday said its board has constituted a sub-committee to consider a possible demerger of its airport business.
The latest development comes amid buzz that GMR Infrastructure Ltd has been mulling listing its airport holding entity, GMR Airports Ltd (GAL), to prune debt and mobilise funds for the next phase of growth of its airports business.
The company informed the bourses that it has already received multiple proposals from investors, which are currently being evaluated and will be placed before the newly constituted sub-committee.
“We wish to inform that the board of directors of the company, at its meeting held on February 14, 2019, approved constitution of a board sub-committee to consider and evaluate options of demerger to unlock shareholder value in the existing business of the group paving way for – i. next phase of growth considering government’s stated intent of faster privatization of airports in the country which is $100 billion investment opportunity, ii. raising equity capital in the airport business and iii. accelerated de-leveraging of company,” the company informed the bourses.
The company, however, did not divulge any additional information in this regard stating that it is at a premature stage.
In October last year, GMR Infra had settled its row with investors — SBI Macquarie, Standard Chartered Private Equity, JM Financial Old Lane, among others — in what was seen as paving the way for spinning off GAL into a separate entity.
As part of the agreement, all the parties had decided to withdraw arbitration and said they would acquire 5.86% equity of GAL and receive a payment of Rs 3,560 crore in lieu of their entire CCPS (compulsorily convertible preference shares) in GAL, which was valued by investors at Rs 21,000 crore.
16/02/19 Times of India
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The latest development comes amid buzz that GMR Infrastructure Ltd has been mulling listing its airport holding entity, GMR Airports Ltd (GAL), to prune debt and mobilise funds for the next phase of growth of its airports business.
The company informed the bourses that it has already received multiple proposals from investors, which are currently being evaluated and will be placed before the newly constituted sub-committee.
“We wish to inform that the board of directors of the company, at its meeting held on February 14, 2019, approved constitution of a board sub-committee to consider and evaluate options of demerger to unlock shareholder value in the existing business of the group paving way for – i. next phase of growth considering government’s stated intent of faster privatization of airports in the country which is $100 billion investment opportunity, ii. raising equity capital in the airport business and iii. accelerated de-leveraging of company,” the company informed the bourses.
The company, however, did not divulge any additional information in this regard stating that it is at a premature stage.
In October last year, GMR Infra had settled its row with investors — SBI Macquarie, Standard Chartered Private Equity, JM Financial Old Lane, among others — in what was seen as paving the way for spinning off GAL into a separate entity.
As part of the agreement, all the parties had decided to withdraw arbitration and said they would acquire 5.86% equity of GAL and receive a payment of Rs 3,560 crore in lieu of their entire CCPS (compulsorily convertible preference shares) in GAL, which was valued by investors at Rs 21,000 crore.
16/02/19 Times of India
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