gmr infra share price: GMR Infra shares rise 5% after Rs 1,330 crore divestment from Mactan Cebu International Airport

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Shares of were trading up more than 5% in Friday trading after the company’s subsidiary, GMR Airports, signed an agreement with Aboitiz InfraCapital to sell its stake in Mactan Cebu International Airport.

GMR Airports International BV (GAIBV), a retroactive subsidiary of

entered into definitive agreements with Aboitiz InfraCapital Inc (AIC), for AIC to acquire shares in GMR-Megawide Cebu Airport Corporation (GMCAC).

The agreement involves the issuance of primary shares by GMCAC and the transfer of secondary shares from Megawide and GIABV to Aboitiz InfraCapital for an amount of Rs 1,300 crore, which will see the latter own approximately 33% minus 1 share in GMCAC.

Simultaneously with the above, the transaction also involves the issuance by megawide and GAIBV of exchangeable notes for Rs 1,100 crore each totaling an amount of Rs 2,200 crore (Notes). The Notes will mature on October 30, 2024 and will be exchanged by AIC for the remaining 66% plus 1 share of the outstanding capital stock of GMCAC.

The transaction will be undertaken at an enterprise value of PhP 49.7 billion (Rs 70.5 billion) and GAIBV will receive an initial amount of PhP 9.4 billion (Rs 13.3 billion) in lieu of transferred shares and notes issued.

As of 10:50 am, the certificate was trading 4.17% higher at Rs 40 compared to the last day’s close of Rs 38.40 apiece. The stock is up nearly 30% in the past year, but is down more than 16% so far in 2022.

Commenting on the divestiture, Srinivas Bommidala, Business Chairman – International Airports, GMR Group said: “Over the past 8 years, we have completed the expansion plan and have been one of the fastest growing airports in the world. region, leading to steady returns. With AIC’s deep expertise in the region, we are confident that Cebu Airport will reach new heights.

“The decision to divest our stake in GMCAC is also consistent with GMR Airport’s strategy to focus on deleveraging and redeploying capital into high growth opportunities. Additionally, we have strengthened our position in the Asia-Pacific region by partnering with AP2 to develop and operate Kualanamu International Airport in Medan, Indonesia,” said Srinivas Bommidala.

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