GMR Airports, a leading player in the aviation sector, has made a strategic move to expand its international footprint and diversify its non-aviation business. The company recently announced that its unit has acquired a 60% stake in a Greek operation, focusing on the development of non-aeronautical businesses at Crete Airport, also known as the New Heraklion International Airport at Kasteli, Greece.

Strategic Acquisition Details

According to a regulatory filing by GMR Airports Limited, its wholly-owned step-down subsidiary, GMR Airports Greece Single Member S.A. (GAGSMSA), has incorporated and acquired GMR Terna Commercial S.A. (GTCSA). The acquisition involves:

• Subscription of 600,000 shares
• Price per share: €1
• Total investment: €600,000 (approximately ₹6.00 crore)
• Ownership: 60% of GTCSA's paid-up share capital

Expansion of Non-Aviation Business

GTCSA, a limited liability company incorporated in Athens, Greece, will be responsible for undertaking non-aeronautical businesses at the Crete Airport. This move aligns with GMR Airports' strategy to grow its international airport operations beyond traditional aviation services.

Strategic Implications

The acquisition is expected to:

• Complement GAGSMSA's existing business related to the development, operation, and maintenance of the Crete airport at Kasteli
• Strengthen GMR Airports' airport adjacencies and airport-related businesses

Transaction Details

Key points about the transaction include:

• Not considered a related party transaction
• No direct interest held by the promoter/promoter group of GMR Airports, beyond their existing indirect shareholding in GAGSMSA
• No governmental or regulatory approvals required for this acquisition

Future Outlook

While GTCSA is yet to commence its business operations, this strategic move positions GMR Airports to capitalize on the growing non-aviation revenue streams in international airports. The expansion into the Greek market could potentially open doors for further opportunities in the European aviation sector.

As GMR Airports continues to expand its global presence, this acquisition marks a significant step in diversifying its portfolio and strengthening its position in the international airport operations landscape.

GMR Airports Limited, a major player in the airport infrastructure sector, has announced a strategic move to expand its presence in the Greek market. The company's wholly-owned step-down subsidiary, GMR Airports Greece Single Member S.A. (GAGSMSA), has acquired a 60% stake in a newly incorporated Greek company, GMR Terna Commercial S.A. (GTCSA), for approximately INR 6.00 crore.

Transaction Details

The acquisition involved GAGSMSA subscribing to 6,00,000 shares of Euro 1 each, totaling Euro 6,00,000 (approximately INR 6.00 crore) in GTCSA. This transaction represents 60% of the paid-up share capital of the newly formed Greek entity.

Strategic Importance

GTCSA is set to play a crucial role in GMR's expansion plans in Greece. The company will be responsible for handling non-aeronautical businesses at the New Heraklion International Airport in Crete, Greece. While GTCSA is yet to commence its business operations, this move is seen as a strategic step to strengthen GMR's position in airport-related businesses.

Alignment with Existing Operations

The acquisition aligns with GAGSMSA's existing business activities related to the development, operation, and maintenance of the Crete airport at Kasteli, Greece. It is expected to bolster GMR's airport adjacencies and airport-related businesses, leveraging the company's expertise in airport infrastructure management.

Regulatory Aspects

According to the company's disclosure:

• The transaction does not require any governmental or regulatory approvals.
• It is not considered a related party transaction.
• The promoter/promoter group of GMR Airports Limited do not hold any interest in the transaction beyond their existing indirect shareholding in GAGSMSA.

Market Impact

This strategic move by GMR Airports Limited demonstrates the company's commitment to expanding its global footprint and diversifying its revenue streams. By entering the non-aeronautical business segment at the New Heraklion International Airport, GMR is positioning itself to capitalize on the growing opportunities in airport infrastructure and related services in Europe.

As the aviation industry continues to recover and grow post-pandemic, such strategic investments could potentially yield significant returns for GMR Airports Limited in the long term. Investors and market watchers will likely keep a close eye on how this acquisition contributes to the company's overall growth strategy and financial performance in the coming quarters.