Mumbai: The competition commission of India (CCI) approved the deal acquisition of a 55.2% in GMR’s airports business by Tata Realty, GIC and SSG Capital management, subject to certain modifications proposed by the Tata entity.
The approval was given to TUTPL which is a subsidiary of Tata Realty and Infra which in-turn is a wholly-owned subsidiary of Tata Sons; Valkyrie, an affiliate of GIC Private Limited and Solis, an investment vehicle of the SSG group.
The deal will bring Rs 8,500 crore to the company. The stake sale will give Tatas a stake of about 20% in the airport holding company, while GIC and SSG will hold about 15% and 10%, respectively. GMR Infra's stake will come down to about 54% while an employee welfare trust will hold about 2%.
The consortium has valued GMR Airports at Rs 18,000 crore. This, added to 'earn-outs' of up to Rs 4,475 crore over the next five years, will take the total value to Rs 22,475 crore after the stake sale is consummated. Achieving of the earn-outs will increase GMR's stake from 54% to about 62%, after the current PE investors SBI Macquarie, Standard Chartered Private Equity and JM Financial Old Lane exit, releasing their current stake of 5.8% in the group. It is also likely to alter the consortium's stake by a minor margin.
01/10/19 Anirban Chowdhury/Economic Times
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The approval was given to TUTPL which is a subsidiary of Tata Realty and Infra which in-turn is a wholly-owned subsidiary of Tata Sons; Valkyrie, an affiliate of GIC Private Limited and Solis, an investment vehicle of the SSG group.
The deal will bring Rs 8,500 crore to the company. The stake sale will give Tatas a stake of about 20% in the airport holding company, while GIC and SSG will hold about 15% and 10%, respectively. GMR Infra's stake will come down to about 54% while an employee welfare trust will hold about 2%.
The consortium has valued GMR Airports at Rs 18,000 crore. This, added to 'earn-outs' of up to Rs 4,475 crore over the next five years, will take the total value to Rs 22,475 crore after the stake sale is consummated. Achieving of the earn-outs will increase GMR's stake from 54% to about 62%, after the current PE investors SBI Macquarie, Standard Chartered Private Equity and JM Financial Old Lane exit, releasing their current stake of 5.8% in the group. It is also likely to alter the consortium's stake by a minor margin.
01/10/19 Anirban Chowdhury/Economic Times
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