Infrastructure giant GVK Power & Infrastructure Ltd has completed the transaction to acquire another 14 per cent stake in the Bangalore International Airport Ltd (BIAL) from Siemens for Rs 613.82 crore ($135 million), valuing BIAL at Rs 4,378 crore. The deal will make GVK the single largest shareholder in BIAL, increasing its stake from the current 29 per cent to 43 per cent.
Bangalore Airport & Infrastructure Developers Pvt Ltd, a step-down subsidiary of GVK Power & Infrastructure, has exercised its right of first refusal for acquiring 53.84 million shares held by Siemens Project Ventures GmbH (Siemens), at a price of Rs 114 per equity share.
The move comes a day after GVK increased its stake to 50.5 per cent in Mumbai International Airport Pvt Ltd (MIAL) for $231 million, making it a subsidiary. GVK Power & Infrastructure scrip was down 1.03 per cent, trading at Rs 14.45 per unit on the BSE at 11:26 am.
Two years ago, GVK Power & Infrastructure had acquired stake from engineering and construction firm L&T and Zurich Airport for around Rs 1170 crore. It had picked 12 per cent in BIAL from Zurich Airport for Rs 484.6 crore and followed it up by acquiring another 17 per cent from L&T for Rs 686 crore, which made it the second largest shareholder in the airport project, behind Siemens.
GVK runs two of the three busiest airports in the country, thus emerging as India’s largest airport operator in the private sector. For Q1 FY12, MIAL reported 20 per cent increase in revenues to Rs 321 crore with profit-after-tax rising 44 per cent to Rs 57.8 crore, compared to the same period last year. BIAL reported 16 per cent increase in revenues to Rs 149.3 crore with PAT more than doubling to Rs 43 crore for the same period.