Aéroports de Paris SA: With the acquisition of 49% of GMR Airports,
Groupe ADP creates the leading global network of airports
PRESS RELEASE
20 February 2020
Aéroports de Paris SAWith the acquisition
of 49% of the Indian group GMR Airports, Groupe ADP creates
the leading global network of airports
Groupe ADP has signed a share purchase agreement
to buy, under certain conditions, a 49% stake in GMR Airports.
The operation will unfold in two phases: a first
phase will be realized within the coming days for a 24.99% stake.
The second phase, for 24.01%, is subject to certain regulatory
conditions, notably obtaining the customary regulatory approvals
for that type of project, in particular from the Reserve Bank of
India. It will be concluded during the upcoming months.
Once this operation completed, GMR Airports will
be jointly owned with GMR Infrastructure Limited ("GIL"), listed
entity of GMR Group, which will keep a 51% stake and retain control
over the company. Groupe ADP will be granted highly extended
governance rights.
GMR Airports is a world-class airport
operator
GMR Airports, leading Indian airport group
operating in a dynamic region, has a portfolio of world-class
assets comprising seven airports in three countries (India,
Philippines and Greece) and a subsidiary specialized in project
management ('GADL').
Three out of the seven airports are operated by
GMR Airports: Delhi International Airport and Hyderabad
International Airport in India (fully consolidated within GMR
Airports' financial statements), Mactan-Cebu Airport in
the Philippines (consolidated under the equity method in GMR
Airports' financial statements). They handled a total of 102
million passengers in 20191, an increase of +8.4% compared to the
previous fiscal year.
The four other airports, which welcomed 22
million of passengers in 2019, are either currently under
development (Goa and Heraklion) or won after a bidding process
(Nagpur and Bhogapuram). They will be operated by GMR Airports once
the works are completed.
During fiscal year 20192, which ended on March
31st 2019, GMR Airports has recorded a total revenue2/3 of
715 million euros and reported an EBITDA2/3 of 205 million
euros.
Delhi and Hyderabad airports are carbon neutral
(ACA34)
Groupe ADP thus realizes a major
acquisition aligned with its strategy
The total purchase price for the 49% stake is
107.8 billion INR (being around 1,360 million euros5). The
EV/EBITDA6 ratio of the acquisition stands in the lower range of
the average of similar transactions7. The internal rate of return
(IRR) forecast in Indian rupee is above 10% (low teen).
Groupe ADP will consolidate GMR Airports under
the equity method. Groupe ADP's dividend payout policy at a minimum
rate of 60% of the Net Result Attributable to the Group for 2019
and 2020 is confirmed. Groupe ADP expects a limited impact on
earnings per share for the next five years with this acquisition,
which will then become strongly accretive after 2025. This
acquisition will strongly contribute to the growth of the Return On
Capital Employed (ROCE) on the medium and long term.
Regarding governance, Groupe ADP will be granted
extended rights including the presence of board members at GMR
Airports' board equal to that of GMR Infrastructure Limited board
members. Groupe ADP will also have the right to appoint
predetermined key executives within GMR Airports.
This acquisition is in line with the
international development strategy presented during Groupe ADP's
Investor day on April 5th 2019. This strategy is based notably on
the acquisition of airport clusters located in dynamic regions in
terms of economy and air traffic. The acquisition will be financed
by Aéroports de Paris' treasury and, if appropriate, through
loans.
Driven by a very dynamic economy, air traffic in
India is expected to rise by 6.5% per year on average between 2018
and 20381, and the international traffic alone is expected to grow
at an average pace of 6.7% per year.
A strategic partnership for three major
airport development platforms
The financial operation includes a strategic
industrial partnership with GMR regarding business development in
aviation, retail, IT, hospitality, innovation and engineering.
This operation also prepares Groupe ADP's future
growth, with the existing assets, with the expected air traffic
growth, the long run horizon of their concessions2 and the large
capacity reserves, as well as the future acquisitions.
With three major development platforms –
Groupe ADP, TAV Airports and GMR Airports – this operation gives
birth to the leading global network of airports.
Augustin de Romanet Chairman and Chief Executive
Officer of Aéroports de Paris SA-Groupe ADP stated:
"The acquisition of a 49% stake in GMR Airports
fits within Groupe ADP's strategy. We share with the GMR family a
long term vision and a partnership culture. This acquisition comes
with a robust industrial partnership and enables Groupe ADP to
build, only two years after taking control of TAV Airports, a
unique worldwide network of airports with a solid industrial
expertise and strong development capacities. Medium and long term
growth driver, this acquisition is a transforming position for the
group in one of Asia's most dynamic and promising countries."
GM Rao, Chairman, GMR Group stated:
“The partnership with Groupe ADP is in line with
GMR’s business direction to become a global airport developer and
operator. We have been on a journey of defining airports of the
future with key focus on passenger experience by leveraging
enhanced technology and offering superior amenities. With Groupe
ADP, GMR will have smoother access to global markets, opening up
newer avenues of business growth.”
Agenda
The Group will comment this announcement today
(on 20 February 2020) at 6:00 pm, Paris time, during a conference
call in English, intended for financial analysts and
investors.Conference call: Thursday 20 February 2020 at
6:00 pm (CET)
Listening live:
From France: 01 70 72 25 50
From other countries: +44 (0)33 0336 9125
Confirmation code: 7983556
Webcasting of the analysts meeting on our
website by clicking on the link for the webcast, and the
presentation: finance.groupeadp.fr
Investor Relations: Audrey Arnoux, Head of Investor
Relations +33 6 61 27 07 39 -
invest@adp.frPress contact: Lola Bourget,
Head of Medias and Reputation Department +33 1 74 25 23
23
Groupe ADP develops and manages airports,
including Paris-Charles de Gaulle, Paris-Orly and Paris-Le Bourget.
In 2019, the group handled through its brand Paris Aéroport more
than 108 million passengers and 2.2 million metric tons of freight
and mail at Paris-Charles de Gaulle and Paris-Orly, and more than
110 million passengers in airports abroad. Boasting an exceptional
geographic location and a major catchment area, the Group is
pursuing its strategy of adapting and modernizing its terminal
facilities and upgrading quality of services; the group also
intends to develop its retail and real estate businesses. In 2019,
group revenue stood at €4,700 million and net income at €588
million.Registered office: 1 rue de France – 93290 Tremblay en
France, France. A public limited company (Société Anonyme) with
share capital of €296,881,806. Registered in the Bobigny Trade and
Company Register under no. 552 016 628.
groupeadp.fr
1 Total traffic recorded at 100%2 Indian Accounting
Standards (IND AS) – Fiscal year 2019 (April 1st, 2018 – March
31st, 2019), exchange rate EUR/INR=75.423 Source : GMR
Investor Presentations Q4FY19 & FY2018 :
https://investor.gmrgroup.in/investor-presentations4 Airport Carbon
Accreditation5 Excluding acquisition costs, exchange rate
EUR/INR=79.356 EV / 2020 EBITDA ratio = (equity value + net debt) /
(turnover and other recurring revenues minus purchases and current
operating expenditures excluding depreciation / impairment of
physical and non-physical assets, under IFRS accounting standards)7
Sample of 7 transactions closed since 2012 in the airport industry
and in growing parts of the world with publicly available
data
1 Source: IATA
2 30-years periods, started in 2006 with an
extension option for 30 additional years for Delhi International
Airport and started in 2008 with an extension option for 30
additional years for Hyderabad Airport. And 25-year period started
in 2014 for Mactan Cebu Airport
- Aéroports de Paris SA - With the acquisition of 49% of GMR
Airports, Groupe ADP creates the leading global network of
airports
- Groupe ADP - Investment in GMR Airports - Groupe ADP becomes
the first global airport network
ADP Promesses (EU:ADP)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
ADP Promesses (EU:ADP)
Historical Stock Chart
Von Jul 2023 bis Jul 2024