GVK Power to buy additional stake in Bangalore airport from Siemens Project

Bangalore Airport & Infrastructure Developers (BAIDPL), a step down subsidiary of the GVK Power & Infrastructure 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 Project Ventures GMBH. This is equivalent to 14% of the issued capital of Bangalore International Airport (BIAL), at a price of Rs 114 an equity share. The acquisition would be completed after obtaining the requisite approvals, if any.

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 Power & Infrastructure is engaged in infrastructure development in areas of power, airports and roads. Incorporated in 1994, the company till date has invested over Rs 5,000 crore in infrastructure projects.