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    GMR Infra shares rise 5% after Rs 1,330 crore divestment in Mactan Cebu International Airport

    Synopsis

    Simultaneously with the above, the transaction likewise involves the issuance by megawide and GAIBV of exchangeable notes for Rs 1,100 crore each aggregating to an amount of Rs 2,200 crore (Notes). The Notes will mature on 30th October, 2024 and will be exchanged by AIC for the remaining around 66 per cent plus 1 share of GMCAC’s outstanding capital stock.

    GMR Infra shares rise 5% after Rs 1,330 crore divestment in Mactan Cebu International AirportAgencies
    Shares of GMR Infra were trading over 5 per cent higher in Friday’s trade after the company’s subsidiary GMR Airports signs deal with Aboitiz InfraCapital for divestment of its stake in Mactan Cebu International Airport.

    GMR Airports International BV (GAIBV), a step-down subsidiary of GMR Infrastructure has entered into definitive agreements with Aboitiz InfraCapital Inc (AIC), for AIC to acquire shares in GMR-Megawide Cebu Airport Corporation (GMCAC).

    The agreement involves GMCAC’s issuance of primary shares and the transfer of secondary shares from Megawide and GIABV to Aboitiz InfraCapital amounting to Rs 1,300 crore, which will result in the latter owning around 33 per cent minus 1 share stake in GMCAC.

    Simultaneously with the above, the transaction likewise involves the issuance by megawide and GAIBV of exchangeable notes for Rs 1,100 crore each aggregating to an amount of Rs 2,200 crore (Notes). The Notes will mature on 30th October, 2024 and will be exchanged by AIC for the remaining around 66 per cent plus 1 share of GMCAC’s outstanding capital stock.

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

    At 10.50 am, the scrip was trading 4.17 per cent higher at Rs 40 over the last day’s closing of Rs 38.40 a piece. The stock rose nearly 30 per cent in the past one year, However, it is down over 16 per cent so far in 2022.

    Commenting on the divestment, Srinivas Bommidala, Business Chairman – International Airports, GMR Group said, In the last 8 years, we have completed the expansion plan and have been one of fastest growing airports in the region which led 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 in line with GMR Airport’s strategy to focus on deleveraging and redeploying capital in high growth opportunities. Further, we have strengthened our position in the Asia Pacific Region by partnering with AP2 in developing and operating the Kualanamu International Airport at Medan, Indonesia,” Srinivas Bommidala said.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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