Indian infrastructure group GMR Infrastructure and GMR Airports Limited (GAL) agreed to a settlement of their arbitration dispute with private equity investors SBI Macquarie, Standard Chartered and JM Financial Old Lane.
“The deal structure was unique and bespoke,” said Manish Gupta, a partner at Link Legal, the adviser to GMR Group in both the arbitration and the settlement proceedings. “It involved complex structuring to provide partial exit to the existing investors by way of a cash pay-out, conversion of some of their existing securities into equity shares, as well as issuance of non-convertible debentures.”
In accordance with the settlement agreement, all parties are to withdraw the ongoing arbitration. The investors, and certain affiliates, will acquire 5.86% equity of GAL at a valuation of ₹210 billion (US$2.9 billion) and receive a payment of ₹35.60 billion in lieu of their entire compulsorily convertible preference shares (CCPS). GMR received the consent award from the arbitral tribunal based on the settlement agreement.
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