GVK Group buys out Siemen’s BIAL stake for Rs614 crore
23 Aug 2011
Mumbai: Indian airport operator, Hyderabad-based GVK Power and Infrastructure, is all set to become the largest shareholder in Bangalore International Airport (BIAL) after picking up a 14% stake from Siemens. Reports suggest that the agreed upon price is at a premium of 14 per cent.
According to reports, GVK had time till 20 August to exercise its right to buy Siemens shares. Once the deal is processed GVK will own 43 per cent in BIAL while Siemens will hold 26%.
GVK operates the airport as part of the consortium.
The deal values BIAL at Rs4,384 crore, at a premium of 8.6% over the price of Rs105 per share GVK had paid in 2009 for acquiring the stakes of L&T and Zurich Airport.
As the second-biggest shareholder GVK had the first right to pick up Siemens' stake. The deal also gives GVK an additional two seats on the board.
There was no word from GVK about the source of the funding for the transaction.
GVK currently operates the Mumbai international airport.
GVK has plans to invest Rs4000-5,000 crore to expand BIAL. Work is already underway on expanding the terminal's capacity to 17 million passengers. The airport will ultimately develop a capacity to handle over 30 million passengers.
