New Delhi: The Tata Group has agreed to reduce the stake it had proposed to acquire in GMR Airports (GAL) to about 15% from the previously announced 20%, which will likely allow the GMR Group-Tata deal to sail through, people with knowledge of the plan said.
The move is to comply with a rule that bars groups that own airlines to also hold more than 10% in an airport operator. A 15% holding for the Tata Group would keep its effective stake in Delhi International Airport Ltd (DIAL), the GAL unit that runs the airport in the national capital, below 10%.
The Tata Group, which holds a 51% stake in two airlines — AirAsia India and Vistara — is part of a consortium comprising also an affiliate of Singapore sovereign wealth fund GIC and Hong Kong-based SSG Capital Management that had agreed to invest Rs 8,500 crore in GAL.
Under the new formula, GIC will acquire an additional 5% stake in GMR Airports to the previously planned 15%, while SSG will hold about 10%, the people said. GMR Infrastructure’s stake in GAL, which also operates the Hyderabad airport, will come down to about 54% from almost 100%, while an employee welfare trust will hold about 2%.
30/10/19 Mihir Mishra/Economic Times
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The move is to comply with a rule that bars groups that own airlines to also hold more than 10% in an airport operator. A 15% holding for the Tata Group would keep its effective stake in Delhi International Airport Ltd (DIAL), the GAL unit that runs the airport in the national capital, below 10%.
The Tata Group, which holds a 51% stake in two airlines — AirAsia India and Vistara — is part of a consortium comprising also an affiliate of Singapore sovereign wealth fund GIC and Hong Kong-based SSG Capital Management that had agreed to invest Rs 8,500 crore in GAL.
Under the new formula, GIC will acquire an additional 5% stake in GMR Airports to the previously planned 15%, while SSG will hold about 10%, the people said. GMR Infrastructure’s stake in GAL, which also operates the Hyderabad airport, will come down to about 54% from almost 100%, while an employee welfare trust will hold about 2%.
30/10/19 Mihir Mishra/Economic Times
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