Diversified group GMR Infrastructure on Friday (25 December) said agreements have been executed for the proposed restructuring of holdings in GMR Airports Ltd.
As per the pacts, GMR Infrastructure would be entitled to purchase the "equity securities" held by the private equity investors in GAL before June 5, 2017.
The agreements in this regard have been executed following the group exercising its call option rights on the convertible securities held by the private equity investors in GAL -- which manages the diversified group's airport business.
GMR Infrastructure, which has interests in airports, power and other sectors, is looking to consolidate its holdings in GAL.
In April, the diversified group had exercised its call option right on the Compulsorily Convertible Preference Shares (CCPS) held by the private equity investors of GAL.
"Thereafter, GIL (GMR Infrastructure Ltd), GAL and the private equity investors have discussed the proposed restructuring of the terms of their investment in GAL and have now executed agreements, which will be effective only upon completion of conditions precedent in these agreements, including the receipt of necessary regulatory approvals," the group said in a regulatory filing today.
These agreements also provide that GMR Infrastructure would be entitled "to purchase the equity securities held by the private equity investors in GAL at any time before June 5, 2017" as per the terms of the pacts, it added.
Generally, Call Option provides an investor the right to buy securities at a predetermined price within a specific time.
At present, the group operates the international airports in Delhi and Hyderabad as well as the Mactan Cebu International Airport in the Phillippines.
(Agencies)
