GMR Airports and GMR Airports Infrastructure Unite to Streamline Corporate Structure
GMR Airports Infrastructure Ltd., formerly known as GMR Infra Ltd., has announced the successful completion of its merger with GMR Airports Ltd. This strategic move aims to streamline its corporate structure and enhance governance practices. Following the merger, GMR Airports Infrastructure will fully own the airport business, with Groupe ADP as a significant stakeholder.
The merger bolsters GIL’s balance sheet and market capitalization, positioning the company for future growth opportunities.
“Effective today, GMR Airports and GMR Infra Developers have merged into GMR Airports Infrastructure, with an appointed date of April 1, 2023. The initial announcement was made on March 19, 2023,” stated the company in a filing.
Following the merger, the GMR Group will continue to be the largest shareholder of GMR Airports Infrastructure, holding 33.8%, while Groupe ADP will own 32.3%, and public shareholders will account for 33.9% of the paid-up equity share capital. The GMR Group will maintain management control over the newly merged entity.
“I am thrilled to announce the completion of our merger, which underscores our dedication to growth and excellence. We welcome Groupe ADP, our strategic partner, to our listed company. This merger represents a transformative milestone and a significant step in our growth strategy, allowing us to enhance our capabilities and serve our stakeholders, including shareholders, employees, passengers, and airlines,” said GM Rao, Chairman of GMR Group.
Rao expressed confidence that the partnership would leverage synergies, foster innovation in service delivery, establish new industry benchmarks, and uphold the company’s leadership in the airport sector.
This reverse merger is a crucial step for GMR Group, as it consolidates its airport assets and streamlines operations, positioning the company to capitalize on growth opportunities in the aviation sector.
The merger is anticipated to positively influence GMR’s financial performance by providing improved access to funding and financing options, facilitating the acceleration of its growth initiatives.
On Thursday, shares of GMR Airports Infrastructure Ltd. (GMR Infra) closed down 1.09% at ₹94.25.
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