GMR Group’s airport business arm GMR Airports Infrastructure Ltd (GIL) on Monday said it has entered into a share purchase agreement with Fraport AG Frankfurt Airport Services Worldwide for acquiring the latter’s 10 per cent holding in Delhi International Airport Ltd (DIAL) for USD 126 million.

After completion of the deal, GIL’s stake in the joint venture will rise to 74 per cent from the current 64 per cent, the GMR Group said.

Public airports company Airports Authority of India (AAI) will continue to hold a 26 per cent stake in the venture, it said.

“GMR Airports Infrastructure Ltd (GIL) has entered into a share purchase agreement with Fraport AG Frankfurt Airport Services Worldwide (“Fraport”), towards acquisition by GIL from Fraport, of their current minority 10 per cent equity stake in Delhi International Airport Ltd.

“The said acquisition would be for a negotiated aggregate consideration of USD 126 million,” the company said in a release.

DIAL is a subsidiary of GIL.

“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,” G Kiran Kumar Grandhi, Corporate Chairman of GMR Group, said.

The transaction is subject to the approval of the AAI and GIL shareholders.

The deal is expected to be concluded within 180 days from the date of execution of the share purchase agreement, the company said.

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

“Fraport being a holder of 10 per cent equity stake in DIAL, will be a related party to DIAL and accordingly in terms of Sebi Regulations, the proposed transaction is a related party transaction for GIL and meets the requisite RPT norms,” the company said.

DIAL is a subsidiary of GIL. Other than the direct shareholding of the company and the indirect shareholding by its promoters, GMR Enterprise Pvt Ltd and Aeroports de Paris SA, in DIAL, the promoters or promoter group do not have any other interest in DIAL, it added.