GVK group to take over BIAL

Bangalore: After acquiring 29 per cent stake in BIAL’s equity capital, the Hyderabad-based power and infrastructure business house, GVK group, is all set to take the management control of the company that runs the country’s third largest airport in terms of passenger traffic.
In a telephonic interview with Deccan Herald from Mumbai, Sanjay Reddy, Vice Chairman, GVK Power and Infrastructure Ltd—the holding company for GVK group’s operations in power and infrastructure—said GVK bought BIAL stake with the intention of running the airport. “We are not a passive investor. We will take an active part in the day-to-day running of BIAL,” said Reddy.
The GVK group, which runs the Mumbai airport with its 37 per cent holding in the company (a South African consortium also owns equal stake), first bought 12 per cent stake in BIAL in November this year from Zurich Airport, an original promoter, for Rs 484 crore at Rs 105 per share. GVK struck again when it picked up the entire 17 per cent promoters’ stake of Larsen and Toubro at the same price, taking the total holding to 29 per cent at an investment of Rs 1,170 crore.
The management change-over of BIAL is expected to be a friendly affair as all partners have agreed to it, Reddy said. GVK has already initiated discussions with other investors — Siemens Project Ventures of Germany (40 per cent stake), Airport Authority of India (13 per cent), Karnataka Government (13 per cent) and Zurich Airport (5 per cent).
12/12/09 Dilip Maitra/Deccan Herald

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Categories: Airports Dec 2009