The Rs 2,000 cr Hyderabad based Infra major - GVK Power has acquired 12% in Bangaluru International Airport Ltd for Rs 485 crore from Flughafen Zurich AG through GVK Airport Developers Pvt Ltd.
The transaction values the 18 month old BIAL at Rs 4,000 cr. GVK will fund the acquisition through internal accruals.
Unique, globally known as the operator of the Zurich airport, had a 17.2% stake in the 18-month-old BIAL. In October this year, Zurich unveiled plans to divest stake in BIAL in which it along with Larsen & Toubro and Siemens held a 74% stake. The Airports Authority of India and Karnataka government’s KSIIDC are the minority partners, with 13 % share each.
Zurich will continue to hold a 5% stake and remain as the airport operator.
This is GVK’s second foray into an airport project in India. It is also involved in modernisation of the Mumbai airport. The acquisition would be completed on obtaining the necessary consents. The company has also entered into a Strategic Alliance Agreement (SAA) with Unique Airports Worldwide AG (Zurich Airport) to collaborate for new airport projects in the Indian sub-continent.
GVK is also in discussions with its partner Bidvest Group to buyout the latter’s 13.5% stake in Mumbai International Airport Ltd. Post the acquisition, GVK would have 50.5% in the Mumbai airport.
Standard Chartered Bank was the advisor to GVK on this transaction.
