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GVK Power and Infra has increased its holding in Bangalore Airport to 29% by picking up L&T' stake for Rs 686 crore.
GVK Power and Infrastructure Limited (GVKPIL) has tightened its grip on the Bangalore International Airport Ltd (BIAL) by picking up another 17% stake. GVKPIL, which picked up a 12% stake last month from Flughafen Zuerich AG, has picked up the stake ffrom L&T Infrastructure Development Projects for Rs 686 crore. The deal has been struck at Rs 105 per share, GVKPIL said in a release. The deal values BIAL at Rs 4,050 crore, around the same as the previous transaction with Flughafen Zuerich.
With this acquisition, GVK will now become the second largest shareholder in BIAL with a 29% stake. GVK, which already owns the Mumbai International Airport, has expressed interest in acquiring a controlling stake in the airport. The largest shareholder in BIAL is Siemens Project Ventures with a 40% stake, while Airports Authority and Karnataka Government’s KSIIDC holding 13% each. The rest 5% is held by Flughafen Zuerich.
"The acquisition of additional stake in BIAL is in line with our objective of expanding GVK’s presence in the airports business," said Chairman and Managing Director of GVKPIL Dr. G V Krishna Reddy. GVK's rival GMR is developing airports in Delhi, Hyderabad and Istanbul.
GVKPIL has also forged a strategic alliance with Unique Airports Worldwide AG (Zurich Airport) to jointly develop new airport projects in the Indian sub-continent last month.
