New Delhi: ADP, the operator of the main Paris airports, agreed to sell up to 7.3% of India’s GMR Airports Ltd. as part of a deal worth as much as €924 million ($1.08 billion).
The French group agreed to sell the stake to a vehicle connected to GMR’s founding family in a multistage deal, according to a statement confirming an earlier Bloomberg News report. ADP will sell 3.4% of its shares for €256 million and receive a put option to sell an additional 3.9% for about €285 million.
The family’s vehicle has also agreed to purchase convertible bonds for €301 million face value, plus accrued interest as of the date of the transaction, which is set to be completed by March 31, 2027, ADP’s statement showed.
GMR Airports fell as much as 1.7% in Mumbai trading Friday, extending this year’s loss to about 10%, similar to India’s Sensex index. The company has a market value of $10.7 billion.
ADP said its governance rights and status as a so-called co-promoter will remain on completion of the deal. The company doesn’t intend to divest any more of its stake in GMR Airports, and will use cash from the transaction for short-term deleveraging, as well as a special dividend as soon as this year.
“ADP is taking the opportunity to crystallise part of the value of its investment, while maintaining a significant economic exposure to the future growth potential of this key asset,” ADP Chief Executive Officer Philippe Pascal said in the statement. ADP initially acquired a 49% stake in GMR Airports in 2020.
With the completion of the deal, ADP’s board of directors proposed a special dividend of €0.8 per share for the 2025 financial year. Following the exercise of the option, the board may propose an additional special distribution to shareholders of €1 per share.
Citigroup Inc. acted as financial adviser to ADP, S&R Associates and Hogan Lovells were legal advisers and Urban Strategic Pte was a strategic adviser, according to the statement.