BIAL to raise $200 mn, eyes valuation of $2-2.5 bn

Bangalore/Mumbai: The operator of the newly-opened Bengaluru International Airport is seeking a valuation of up to $2.5 billion to raise about $200 million in equity to fund the second phase of the airport’s development.
The valuation of Bangalore International Airport Ltd (BIAL), which sources put at as high as Rs 10,000 crore, or about $2.3 billion, could make it among the most valuable privately-owned domestic aviation assets. This would better the three-month-old Hyderabad Rajiv Gandhi International Airport, majority owned by GMR Group, which is estimated to be valued at $1-1.5 billion.
BIAL—40% owned by Siemens with L&T, Unique Zurich, Airports Authority of India and KSIIDC, a Karnataka government agency, holding the rest—is exploring the option of a private placement, among others, to raise part of the equity for the proposed Rs 2,500-crore expansion. It is believed that the company is exploring various possibilities and no investment bank is involved in the process.
A source said the company was seeking valuation in the range of $2-2.5 billion, leading to a possibility of 8-10% equity placement for raising over $200 million. While BIAL CEO Albert Brunner said the information on fundraising through private placement was not true, one of the investors confirmed to ET that all options are being explored.
26/06/08 Boby Kurian, Rajesh Unnikrishnan & Peerzada Abrar/Economic Times

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Categories: Airports Jun 2008