GVK buys 14% stake in Bangalore Airport

A subsidiary of Indian developer GVK Power & Infrastructure has agreed to acquire a stake in Bangalore Airport for about $132m from Siemens Project Ventures. Once completed, the acquisition will make GVK the airport’s largest shareholder.

Indian developer GVK Power & Infrastructure has agreed to acquire a 14 percent stake in Bangalore International Airport for about Rs$6.1 billion (€92.2 million; $132 million) from Siemens Project Ventures.

Bangalore Airport & Infrastructure Developers, a subsidiary of GVK which already owns an interest in the airport, will acquire 53.8 million shares at Rs.114 per share, according to a statement to the Bombay Stock Exchange.

The acquisition still awaits the necessary regulatory approvals, GVK said.

Once the acquisition is completed, GVK will surpass Siemens as the airport’s largest single shareholder. State-backed Airport Authority of India and the Government of Karnataka each own 13 percent, while private developers own 74 percent of the project.

In January 2010, GVK acquired a 29 percent interest in Bangalore International Airport, according to the firm’s website. Siemens owns 40 percent, according to the company’s website, while Larsen & Toubro and Unique Zurich Airport each own 17 percent.

GVK says the airport is the first greenfield airport project to be constructed under India’s public-private partnership framework.

GVK also owns an interest in Mumbai International Airport (MIAL). Earlier this year, GVK acquired an additional 13.5 percent of MIAL for about $287 million, bringing the firm’s total stake in the airport to 50.5 percent.