GVK buys L&T’s stake in BIAL

Bangalore: GVK Power and Infrastructure has acquired L&T’s 17% stake in Bangalore International Airport Limited (BIAL) for a total consideration of Rs 686 crore. The acquisition, the company said, was priced at Rs 105 per share. With this acquisition, GVK will now hold 29% stake in BIAL. Just last month, the company had also acquired 12%, of the total 17%, stake that Zurich Airport held in the Bangalore airport.
The price at which the L&T stake has been acquired is exactly the same at which the Zurich Airport stake was acquired. The latter was done at a cost of Rs 484.6 crore. At the time of buying the Zurich Airport stake, GVK had said it was keen on buying more stake in BIAL.Siemens still holds the largest stake in BIAL at 40%. GVK now becomes the second highest stake holder. Zurich Airport holds 5%. The Airports Authority of India and KSIIDC, the financing arm of the Karnataka government for infrastructure projects, hold 13% stake each.Both L&T and Zurich Aiport have made a return of over 700% on their investments in BIAL.
GVK is also the lead promoter of Mumbai International Airport.
06/12/09 Times of India

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Categories: Airports Dec 2009