GVK to invest Rs4,500 cr in Bial, also plans to buy Siemens stake

Mumbai: GVK Power and Infrastructure Ltd, which owns a 29% stake in Bangalore International Airport Ltd, or Bial, will invest Rs4,000-4,500 crore to modernize and expand the facility, according to chairman and managing director G.V. Krishna Reddy.
It also plans to buy Siemens Project Ventures GmbH’s 40% stake in Bial.
“We would want to acquire the Siemens stake. But there are some restrictions. We will take over Siemens’ stake at an appropriate time,” said Reddy, without elaborating on the mode of acquisition.
Siemens is required to stay invested for a specific period, in accordance with the terms of the ownership agreement.
GVK plans to enter into an understanding with Siemens on buying the stake at a future date at a predetermined price.
Reddy did not say how he would raise funds for acquiring the stake, but said he would have no problem in finding resources.
After acquiring a 17% stake in Bial from India’s largest engineering firm Larsen and Toubro Ltd (L&T) in December 2009 for Rs686 crore, GVK has emerged as the second largest stakeholder in the company with a 29% stake.
In November, GVK had acquired 12% of Zurich Airport’s stake in Bial for Rs484.6 crore. Both the deals priced Bial shares at Rs105 apiece.
GVK also runs Chhatrapati Shivaji International Airport in Mumbai through a special purpose vehicle, Mumbai International Airport Ltd, or Mial.
09/03/10 P.R. Sanjai/Live Mint

To Read the News in full at Source, Click the Headline

Categories: Airports Mar 2010