Bangalore/Mumbai: India’s largest engineering firm Larsen and Toubro Ltd (L&T) has offered to sell part of its 17% stake in Bangalore International Airport Ltd, or Bial, to its partners at Rs108 a share, giving it a return of more than 10 times, two people familiar with the development said.
Mumbai-based GVK Power and Infrastructure Ltd, which acquired a 12% stake in the project from Zurich Airport, one of the promoters, has said it will buy more shares as part of its plan to take control of the south Indian airport. L&T will sell 12% stake in Bial, but the promoters of the airport would have the first right of refusal.
“The time frame for refusal ends on 19 November. After that they can sell it in the open market,” one Karnataka government official said. He did not want to be named as he was not authorized to speak to the media. L&T spokesperson D. Morada denied there was any stake sale plan. “It’s all in the realm of speculation.”
Sanjay Reddy, vice-chairman of GVK Power, said his company will be keen to acquire L&T’s stake if the existing shareholders of Bial are willing to forgo their right of refusal.
Siemens has invested Rs130.68 crore for its 40% holding in Bial, while Zurich and L&T invested Rs55.54 crore each for their 17% stake.
Siemens needs to stay invested for at least three years, before it can dilute up to 14% and seven years before it exits the venture. Zurich can sell up to 12% a year after the airport opens. L&T does not have a lock-in period.
06/11/09 K. Raghu and P.R. Sanjai/Live Mint
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Saturday, November 07, 2009
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L&T offers to sell Bial stake at Rs108 a share; 10-fold return
Saturday, November 07, 2009
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