GVK eyes Siemens' 40% stake in BIAL

Bangalore: GVK Power & Infrastructure, which owns 29% in Bangalore International Airport (BIAL), plans to buy Siemens Project Ventures’ 40% stake in the airport and take majority control.
“We would definitely want to acquire Siemens’ stake when they decide to exit. We have the first right of refusal. We are willing to buy the stake at 105 per share,” said GV Krishna Reddy, chairman, GVK Group.
GVK emerged as the second-largest stakeholder in the company with a 29% stake earlier this year after acquiring 17% in BIAL from India’s largest engineering firm Larsen and Toubro (L&T ) for 686 crore. It also bought out Zurich Airport’s stake for 484.6 crore last year. Both deals were priced at 105 a piece. The Karnataka government and the Airports Authority of India together hold 26%. Zurich Airport still holds 5% stake. The Bangalore airport is valued at around 5,000-6,000 crore.
Siemens, which holds majority stake in BIAL, plays no role in the management. The engineering major built the airport along with L&T, and is required to stay invested for a specific period, in accordance with the terms of the ownership agreement.
20/08/10 Economic Times

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Categories: airports aug 2010