Mumbai: GVK Power and Infrastructure Ltd on Wednesday increased its stake in Bangalore International Airport Ltd to 43% from 29% by buying 53.8 million equity shares from Siemens Project Ventures GmbH for Rs 613.82 crore.
The infrastructure firm on Tuesday acquired a majority stake (50.5%) in Mumbai International Airport Pvt. Ltd (Mial) by buying a 13.5% equity stake from Bid Services Division (Mauritius) Ltd for $231 million.
The acquisition of an additional 14% stake in Bangalore’s airport operator helps the company to further consolidate its position and will help in the next phase of the airport’s growth, chairman G.V. Krishna Reddy said in a statement.
Wednesday’s buyout was made through GVK’s subsidiary Bangalore Airport and Infrastructure Developer Pvt. Ltd.
As the largest shareholder in Bangalore airport with a 40% stake, Siemens had to stay invested for at least three years, which it completed in June, before becoming eligible to dilute up to 14%. It will need to stay invested for a total of seven years before it can exit the venture.
In December 2009, GVK Power acquired a 17% stake in the Bangalore airport operator from India’s largest engineering firm Larsen and Toubro Ltd (L&T) for Rs 686 crore. A month before that, it had acquired 12% of Zurich Airport’s stake for Rs 484.6 crore. Both deals priced the operator’s shares at Rs 105 each.
While L&T has sold its entire stake, Zurich Airport still holds 5% after selling 12% in November. The Airports Authority of India, representing the Union government, and a local government body, the Karnataka State Industrial Investment and Development Corp. Ltd, own 13% each in the firm.
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