GMR to restructure airport business

A consortium of Tata Group, an affiliate of Singapore`s sovereign wealth fund GIC, and SSG Capital Management will invest Rs.80 billion rupees in GMR Airports Ltd, the operator of airport in New Delhi.

The deal will help GMR Infrastructure cut its debt and also provide an exit for private equity investors such as Macquarie, Standard Chartered and JM Financial Ltd from the company`s airports business.

GMR manages airports in New Delhi and Hyderabad.

The deal will reduce GMR group’s net debt to Rs.120 billion from Rs.200 billion in December 2018, while GMR Airports` debt will halve to Rs.10 billion.

This deal will leave GMR Infrastructure with a 54% stake in GMR Airports and keep management control. As investors, Tatas will have about 20%, GIC 15% and SSG nearly 10% stakes.

The deal is to be completed in 2-3 months.

The group is expected to restructure the airport business. fiinews.com