GVK plans to acquire majority stake in BIAL

Bangalore: GVK Power and Infrastructure Ltd, which owns a 29 per cent stake in Bangalore International Airport Ltd, or BIAL, is looking to strengthen its grip. The second-largest shareholder in BIAL, it aims to increase its holding by acquiring other stakes held by shareholders who will be completing their three-year lock-in period in a few months.
According to BIAL COO Hari Marar, the group is eyeing Siemens Project Ventures' 40 per cent stake in BIAL. For this, GVK plans to enter into an understanding with Siemens on buying the stake at a future date at a predetermined price. GVK had earlier shown interest in investing Rs 4,000-4,500 crore to modernise and expand the facility. Marar was speaking on the sidelines of an event organised by the All India Management Association.
GVK had acquired a 17 per cent stake in BIAL from India’s largest engineering firm, Larsen and Toubro Ltd (L&T), in December 2009 for Rs 686 crore. In November, GVK had acquired 12 per cent of Zurich Airport’s stake in BIAL for Rs 484.6 crore. Both the deals priced BIAL shares at Rs 105 apiece.
17/07/10 Business Standard

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Categories: Airports Jul 2010