GMR buys out Fraport’s stake in Delhi airport for $126 million

GMR Airports Infrastructure Ltd will buy out Fraport AG Frankfurt Airport Services Worldwide’s 10% stake in Delhi International Airport Ltd (DIAL) for $126 million, the company informed the stock exchanges.

GMR currently holds 64% of the paid-up capital of DIAL and post the proposed acquisition, its stake in the airport operator would jump to 74%.

Airports Authority of India (AAI) continues to hold 26% stake in DIAL. The disclosure was made after market hours on Tuesday.

Shares of GMR Airports rose 1.46% in early Wednesday morning trade to ₹92.22 against a marginal decline in the broader Sensex index.

“Post consummation of the transaction, Fraport’s appointment as the airport operator of DIAL shall continue to be governed by the airport operator agreement and/or any other agreement(s) executed in relation to its role as the airport operator,” GMR said in a statement.

The transaction, subject to the AAI’s approval and approval of GIL shareholders, along with customary closing conditions, is expected to be concluded within 180 days from the date of execution of the said deal.

“Fraport has been one of the original shareholders and has been our partner in airport journey. They have extended significant technical support to Delhi airport as per their role of airport operator,” G.B.S. Raju, business chairman (airports), GMR Group, said.

“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 the overall group portfolio,” Kiran Kumar Grandhi, corporate chairman of GMR Group, said.

Fraport being the holder of 10% equity stake in DIAL, would be a related party to DIAL and accordingly in terms of SEBI regulations, the proposed transaction is a related party transaction and meets the requisite norms, GMR said. DIAL is currently a subsidiary of the company.

Other than the direct shareholding of the company and the indirect shareholding by its promoters, GMR Enterprise Pvt. Ltd and Aeroports de Paris S.A, in DIAL, the promoters or promoter group do not have any other interest in DIAL, it added.

Fraport is a German transport firm that operates Frankfurt Airport in Frankfurt am Main and holds interests in the operation of several airports across the world.

GMR, one of the largest private airport operators globally, catered to over 121 million passengers in FY24. With a robust presence in India and Southeast Asia, the company operates Delhi, Hyderabad, Goa and Medan airports, while extending its technical services to Mactan Cebu International Airport in the Philippines.
GIL is also developing greenfield airports in Bhogapuram in Visakhapatnam and Crete in Greece.