Zurich Airport to sell 12% in BIAL for $96 m

Bangalore/Mumbai: Bangalore International Airport (BIAL) operator Zurich Airport is divesting a 12% stake in the greenfield venture for $96 million. The move will leave Zurich with 5% shareholding, but it will continue to operate the 18-month-old airport, which is being valued at around $800 million (Rs 3,800 crore).
Flughafen Zurich holds a 17% stake in the Siemens-led private consortium, which developed BIAL. The three private investors — Siemens, Zurich and L&T — together hold a 74% stake, leaving the remaining 26% equally with the Airports Authority of India (AAI) and the Karnataka government.
Zurich Airport, in a media statement, said it has started the divestment process and will offer the stake to existing shareholders in accordance with the right of first refusal before looking at new investors. BIAL had attracted Rs 2,470-crore investment funded 65% by debt, 16% by equity, 14% by support from the state government, with security deposits and internal accruals making up the rest. Zurich’s stake dilution move comes when BIAL is planning the next phase of development, which include additional terminal and second runway, involving Rs 2,500 crore fresh investment. Given the already high debt level, the investors may have to raise equity for the proposed expansion.
07/11/09 Economic Times

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Categories: Airports Oct 2009, Foreign Oct 2009