GMR Airports to Boost Stake in Delhi International Airport with $126 Million Acquisition from Fraport

GMR Airports Infrastructure Limited (GIL) has announced a significant move in its ongoing expansion strategy by entering into a Share Purchase Agreement (SPA) with Fraport AG Frankfurt Airport Services Worldwide (Fraport). Under this agreement, GIL will acquire Fraport’s 10% minority equity stake in Delhi International Airport Limited (DIAL) for an aggregate consideration of USD 126 million.

Currently, GIL holds a 64% equity stake in DIAL, which is a key subsidiary of the company. Following the acquisition, GIL’s stake in DIAL will increase to 74%. The Airports Authority of India (AAI) will continue to hold the remaining 26% equity stake in DIAL. The transaction is subject to the approval of AAI and GIL’s shareholders, as well as other customary closing conditions. The deal is expected to be finalised within 180 days from the SPA execution date.

Fraport has played a crucial role as one of the original shareholders and partners in DIAL, providing significant technical support in its role as the Airport Operator. Despite the sale of its equity stake, Fraport will maintain its role and responsibilities as the Airport Operator of DIAL, governed by the existing Airport Operator Agreement and related agreements.

Acknowledging the role of Fraport, the Business Chairman (Airports) of GMR Group, G. B. S. Raju, said, “Fraport has been one of the original shareholders and has been our partners in the Airport journey. They have extended significant technical support to Delhi Airport as per their role of Airport Operator.”

The Corporate Chairman of GMR Group, Kiran Kumar Grandhi, said, “The acquisition of additional stake in DIAL is in line with our objective of consolidating our presence in core assets of the Group and signifies the importance of Delhi airport in the overall Group portfolio.”

As Fraport’s 10% stake makes it a related party to DIAL, the transaction qualifies as a related party transaction under SEBI regulations. This acquisition not only strengthens GIL’s position but also reflects its commitment to enhancing its presence in key infrastructure assets.

On September 10, 2024, the share price of GMR Airports Infrastructure opened at ₹92.75, touching the day’s high at ₹93.27, as of 10:07 AM on the NSE.

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