GMR Infrastructure jumps as its arm signs deal with Aboitiz InfraCapital

GMR Infrastructure is currently trading at Rs. 39.80, up by 1.40 points or 3.65% from its previous closing of Rs. 38.40 on the BSE.

The scrip opened at Rs. 38.65 and has touched a high and low of Rs. 40.70 and Rs. 38.00 respectively. So far 1172149 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 46.84 on 05-Jan-2022 and a 52 week low of Rs. 28.21 on 13-Sep-2021.

Last one week high and low of the scrip stood at Rs. 40.70 and Rs. 34.05 respectively. The current market cap of the company is Rs. 24113.60 crore.

The promoters holding in the company stood at 58.90%, while Institutions and Non-Institutions held 29.91% and 11.19% respectively.

GMR Infrastructure’s step-down subsidiary -- GMR Airports International BV (GAIBV) has entered into definitive agreements with Aboitiz InfraCapital Inc (AIC), for AIC to acquire shares in GMR-Megawide Cebu Airport Corporation (GMCAC). GMCAC, which is a joint venture between GAIBV and Megawide Construction Corporation (MCC), is the developer and operator of the award-winning Mactan Cebu International Airport (MCIA). GAIBV and MCC have agreed to sell down their existing stakes in GMCAC to accommodate the entry of AIC.

The agreement involves GMCAC’s issuance of primary shares and the transfer of secondary shares from Megawide and GAIBV to AIC amounting to Philippine Peso (PhP) 9.5 billion, which will result in the latter owning 33 and 1/3% minus 1 share stake in GMCAC. Simultaneously with the above, the transaction likewise involves the issuance by Megawide and GAIBV of Exchangeable Notes for PhP 7.75 billion each aggregating to amount of PhP 15.5 billion (Notes). The Notes will mature on October 30, 2024 and will be exchanged by AIC for the remaining 66 and 2/3% plus 1 share of GMCAC’s outstanding capital stock.

The transaction will be undertaken at an enterprise value of PhP 49.7 billion (Rs 70.5 billion) and GAIBV will receive an upfront amount of PhP 9.4 billion (Rs 13.3 billion) in lieu of the shares being transferred, and Notes being issued. The company would continue to operate as the Technical Services Provider to GMCAC until December 2026, would also be entitled to additional deferred consideration based on the subsequent performance of GMCAC for the same period.

A portion of the primary investment into GMCAC shall be used for acquisition by it of identified entities providing services at Cebu Airport. The transaction is subject to customary regulatory approvals in Philippines

GMR Infrastructure is engaged in generation of power, mining and exploration activities, development of highways, infrastructure development, such as development and maintenance of airports and special economic zone; construction business, including engineering, procurement and construction (EPC) contracting activities and operation of airports and special economic zones.