GVK eyes controlling stake in B'lore airport

GVK Power & Infrastructure, which recently took a 12 per cent stake in Bangalore International Airport Ltd (BIAL), has said it is open to taking a controlling stake in the airport.

GVK Power & Infrastructure CMD G V Krishna Reddy hinted that the company may soon be in talks over increasing its stake in BIAL. The company is learnt to be eyeing Larsen &Toubro’s stake in the airport. L&T holds a 17 per cent stake.

Reddy refused to give out any names on whom the company intended to speak with. “We have taken a 12 per cent stake from the Zurich Airport. Today is the last day of right of refusal for L&T, so we can talk about it tomorrow,” he said.

GVK Airport Developers, a wholly-owned subsidiary of GVK Group, had acquired the 12 per cent stake in BIAL for Rs 484.6 crore in November 2009. The stake was acquired from Zurich Airport, which held a 17 per cent stake. Currently, Siemens holds the largest stake in BIAL, at 40 per cent, L&T holds 17 per cent, the Airports Authority of India and KSIIDC, the financing arm of the Karnataka government for infrastructure projects, hold 13 per cent stake each. Zurich Airport’s stake is now 5 per cent.

GVK is also learnt to be talking to Bidvest, its South African partner in Mumbai International Airport Ltd (MIAL) for increasing its stake. Reddy said the deal was under negotiation and an announcement on that could come soon. GVK currently holds 37 per cent in MIAL, while Bidvest holds about 27 per cent.

The Airports Authority of India owns 26 per cent of MIAL and Airport Company South Africa 10 per cent.