|
| Zurich Airport to pare its equity in BIAL |
| BS Reporter / Bangalore Oct 07, 2009, 01:16 IST |
|
Flughafen Zurich AG, operator of Zurich airport in Switzerland, which has a 17 per cent stake in Bangalore International Airport Ltd (BIAL), will reduce this to five per cent, to fund its further growth in India. The divestment process is expected to take four months.
Zurich Airport said it intended to divest the 12 per cent to either an existing shareholder or a new strategic partner, to forge a strong development partnership for its next expansion. It will keep the 5 per cent equity in BIAL, including a board representation.
Zurich Airport intends to further growth in terms of operational management contracts in India with new projects.
Speaking on the development, BIAL said it would in no way affect the functioning of the airport or the stakeholders. Said BIAL’s CEO Marcel Hungerbuehler, “Based on the concession agreement and the shareholders agreement which allows Flughafen Zurich AG to sell 12 per cent of its stake and retain the remaining 5 per cent, the announcement is understood and respected.”
“The management, functioning and operations at Bengaluru International Airport will continue as it is. BIAL’s commitment to its partners, employees and stakeholders will remain protected and unchanged,” Hungerbuehler added.
Zurich Airport had pioneered the privatisation process in India since being selected in 2001 as operator and co-investor for a new airport in Bangalore. In May 2008, the airport began its operations.
BIAL is planning the next expansion of the airport, which includes an additional terminal and a second runway. Zurich Airport has formally launched the Right of First Refusal Process with a valuation expectation for 12 per cent in BIAL shares valued at approximately (Swiss Franc) CHF 100 million (about $97.4 million) before taxes.
|
|
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
|
Content Guide
