GMR buys out Fraport's 10% in Delhi Airport for Rs 1,058 crore
GMR Fraports Stake Buy Deal: GMR Airports has acquired Fraport's 10% stake in Delhi airport for $126 million, increasing its share to 74%. The move aligns with GMR's strategy to consolidate its core assets. Fraport had been seeking to sell its sta...
By ET Bureau | Updated:
GMR Airports Monday said it has bought out German airport operator Fraport's 10% stake in Delhi airport for $126 million (about ₹1,058 crore). GMR operates Delhi, Hyderabad and Goa airports.
Fraport is the owner and operator of Frankfurt airport, Germany's biggest, and had acquired the 10% stake in Delhi International Airport Ltd (DIAL) for about ₹240 crore in 2006 when the government privatised the Delhi airport.
GMR Airports currently holds 64% stake in DIAL-the holding company of Delhi Airport-and after the latest deal, its stake would rise to 74%. State-run Airports Authority of India (AAI) continues to have a 26% stake.
"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 overall portfolio," said Kiran Kumar Grandhi, corporate chairman of GMR Group.
GMR Airports is owned 49% by France's Groupe ADP, the operator of Charles de Gaulle and Orly airports in Paris.
Fraport has been looking to sell the stake for more than a decade due to its inability to increase stake and get more control. The management of the company had publicly announced its intentions of an exit in 2012. But it was unable to do so due to differences in valuation and GMR's own funding problems. According to the agreement, GMR had the right of first refusal on Fraport's stake.
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