GMR Airports to acquire 10% more stake in DIAL from Fraport AG for $126 million

GMR Airports Infrastructure Limited has entered into agreement with Fraport AG Frankfurt Airport Services Worldwide to acquire its 10 percent stake in Delhi International Airport Limited (DIAL). The said acquisition would be for a negotiated aggregate consideration of $126 million, GMR Airports said in a disclosure to the exchanges on September 9. 

GMR Airports Infra currently holds 64 percent of the paid-up capital of DIAL and post the proposed acquisition, its stake in DIAL would increase to 74 percent. Airports Authority of India (AAI) continues to holds 26 percent stake in DIAL.  

Post 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, the disclosure added. 

GBS Raju, Business Chairman (Airports), GMR Group acknowledging the role of Fraport, said, “Fraport has been one of the original shareholders and have been our partners in airport journey. They have extended significant technical support to Delhi Airport as per their role of airport operator.” 

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

Kiran Kumar Grandhi, Corporate Chairman of 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.”