GVK Power and Infrastructure Ltd (GVKPIL) today announced that it proposes to acquire more shares in Bangalore International Airport Ltd by exercising the right of first refusal extended by Siemens Project Ventures GMBH, one of the promoters of the airport.

Bangalore Airport and Infrastructure Developers Private Ltd, a step-down subsidiary of GVKPIL, 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 per cent of the issued capital of Bangalore International Airport at Rs 114 an equity share.

The acquisition will be completed after obtaining approvals.

Commenting on the development, Mr G.V. Krishna Reddy, Chairman of GVKPIL, said: “This will be a key strategic development for us to further underscore our commitment to the airport sector in India. We are confident that BIAL will continue to add value to our airport business and will meet its objective to become the hub for South India.”

The GVK Group now manages Bangalore airport and Mumbai International Airport Ltd, where also it is keen to hike stake.

The company had invested about Rs 1,170 crore to pick up 29 per cent stake from two of the promoters, Zurich Airports and L&T. BIAL was valued at Rs 4,035 crore.

comment COMMENT NOW