GVK to acquire L&T stake in Bial

Mumbai: GVK Airport Developers Pvt Ltd, a wholly owned subsidiary of GVK Power and Infrastructure Ltd, is in the process of acquiring the 17% stake of Larsen & Toubro (L&T) in Bengaluru International Airport Ltd (Bial).
GVK Airport Developers had earlier this month acquired Zurich Airport’s 12% stake in Bial.
The GVK group, which is looking for a larger role in India’s airport business, holds nearly 37% stake in Mumbai International Airport Limited (Mial)—the consortium that runs the Chhatrapati Shivaji International Airport. There were unconfirmed media reports earlier this month that the group was in talks for acquiring 13.5% more stake in Mial, from its South African consortium partner, Bidvest group.
It could not be ascertained whether L&T would sell its entire stake at one go. A spokesperson of the company declined to comment. The deal size could be in the region of Rs 500 crore, considering that GVK had bought the Zurich Airport stake for Rs 484.60 crore.
The existing large stakeholders in Bial have the right of first refusal for picking up the stake, but that expires Friday night. Siemens holds 40% stake in Bial, L&T 17%, GVK 12% and Zurich 5% in Bial, while the remaining 26% is with the government. Of this, 13% is with the Karnataka government and 13% with the Airports Authority.
21/11/09 Financial Express

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Categories: Airports Nov 2009