Mumbai: Leading infrastructure firm GVK Power and Infrastructure Ltd, that runs Chhatrapati Shivaji International Airport in Mumbai, has increased its stake in airport company Mumbai International Airport Ltd, or Mial, to 50.5% from the current 37%.
On Wednesday, GVK Airport Holdings Pvt Ltd (GAHPL), a step down subsidiary of GVK Power, signed a share purchase agreement with Bid Services Division (Mauritius) Ltd (BSDM) to buy a 13.5% stake in Mial.
Mial is a public private partnership joint venture between GVK, BSDM, ACSA Global of South Africa and state-run Airports Authority of India (AAI). Mial was awarded the mandate for operating and modernizing CSIA in April 2006.
“Upon completion of this transaction, GVK will lead the consortium with a stake of 50.5%, BSDM will hold a 13.5% stake, ACSA Global 10% and AAI the remaining 26% in Mial,” GVK said in a media statement.
G. V. Krishna Reddy, chairman GVK Power said: As part of our overall stated objective of consolidating our presence in the airports sector in India, we have taken this significant step of increasing our shareholding in Mial.”
A senior analyst with a domestic brokerage house, who is tracking GVK Power, said the company was in talks with Bid Services for last two years. “GVK wanted to have control in two airports, Bangalore and Mumbai. Finally, they are getting in,” he added. He did not want to be named.
GVK, that also runs new Bengaluru International Airport separately, is in talks with Siemens Project Ventures GmbH on picking up some or all of the German company’s stake in Bangalore International Airport Ltd, or Bial, as apart of consolidating its stake.
Siemens holds a 40% stake in Bial, but is required to stay invested for a specific period in accordance with the terms of the ownership agreement. Mint reported in December 2009 that GVK plans to enter into an understanding with Siemens on buying the stake at a future date at a pre-determined price.
After acquiring a 17% stake in Bial from India’s largest engineering firm Larsen and Toubro Ltd (L&T) in December 2009 for Rs686 crore, GVK had emerged as the second largest stakeholder in Bangalore airport company with a 29% stake. In November 2009, GVK had acquired 12% of Zurich Airport’s stake in Bial for Rs484.6 crore.
In January 2011, GVK Power had signed two agreements with the government of Indonesia to develop greenfield international airports in North Bali and Yogyakarta, Java.
GVK’s rival company GMR Group had already spread to various international geographies including Turkey and Male. GMR had built a new passenger terminal with a capacity to handle 20 million passenger capacity, at the Istanbul Sabiha Gökçen International Airport in Turkey and won the concession for modernizing and expanding the Male Airport along with Malaysia Airports Holdings Berhad (MAHB).
GMR has developed and commissioned the greenfield international airport at Hyderabad. The group operates the Delhi International Airport.