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API magazine
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March 2, 2020
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ADP said that the acquisition was in line with its strategy of buying airports in countries with fast-growing air traffic. The deal will be paid for in cash and, if appropriate, financed through loans, the firm said. “This acquisition is a transforming position for the group in one of Asia’s most dynamic and promising countries,” ADP CEO, Augustin de Romanet, said. Air traffic in India is expected to rise by 6.5% per year on average between 2018 and 2038, with international traffic alone seen growing on average by 6.7% per year, ADP said. The company said the deal would unfold in two phases, with an initial acquisition of a 24.99% stake; the second phase, for 24.01%, is subject to regulatory approval, notably from the Reserve Bank of India and will be concluded “n the coming months”, ADP said. Once the deal is completed, ADP will jointly own GMR Airports with GMR Infrastructure Limited, which will keep a 51% stake and retain control of the company. ADP will be granted highly extended governance rights.