GVK Power ups stake in BIAL to 33%

GVK Power and Infrastructure today announced acquisition of an additional 14% stake in Bangalore International Airport (BIAL) from German firm Siemens Project Ventures, taking its total holding in the company to 33%.

In a filing to the Bombay Stock Exchange (BSE), GVK Power said, "Bangalore Airport & Infrastructure Developers, a step down subsidiary of the company has, subject to certain terms and compliances, exercised its Right of First Refusal, for acquiring 53,844,000 equity shares  with a face value of Rs 10 each held by Siemens...."

The equity shares, the Hyderabad-based company added, represent 14% of the issued capital of BIAL at a price of Rs 114 per equity share.

"The said acquisition would be completed after obtaining the requisite approvals, if any," GVK Power & Infra said.

The acquisition by GVK Power and Infrastructure is in addition to the 29% stake the company holds in BIAL.

Siemens held 40% stake in the company.

In 2009, GVK had acquired 17% stake in BIAL from Larsen and Toubro (L&T) for Rs 686 crore and it acquired 12% of Zurich Airport's stake in BIAL for Rs 484.6 crore. Both the deals priced BIAL shares at Rs 105 a piece.

Private promoters of BIAL hold 74% stake while the state-run Airports Authority of India holds the remaining 26%.

GVK operates two key airports in India — Chhatrapati Shivaji International Airport in Mumbai and the Bengaluru International Airport.

On the BSE today, GVK shares closed at Rs 17.40, up 1.75% from its previous close.