Indian investor lands $104m airport stake

Airport investor GVK Airport Developers has acquired a 12% stake in Bangalore’s International Airport from Flughafen Zuerich, the owner of Zurich Aiport. Flughafen Zuerich will continue to operate the airport and will retain a 5% stake in the asset following the transaction.

Indian airport investor GVK Airport Developers has bought a stake in Bangalore’s International Airport from the owner of Zurich Airport in Switzerland.

Bangalore Airport

GVK Airport Developers has bought a 12 percent stake in the Bengaluru International Airport for INR 4.85 billion (€70 million; $104 million) from Flughafen Zuerich. GVK also said it would consider buying a further stake in the airport, which is in the state of Karnataka. “We wouldn't like to remain a financial investor. If there is an opportunity, we do plan to increase our stake,” the company’s chief financial officer Issac George said to Dow Jones Newswires.

Flughafen Zuerich said in a statement it will remain the operator of the airport, which has the capacity to handle 11 million passengers each year, following the transaction. The Swiss company also said it will retain a 5 percent interest in the airport.

Following the deal, 57 percent of Bangalore International Airport is owned jointly by Indian engineering group Larsen & Toubro and German engineering giant Siemens. The remaining 26 percent stake in the airport is owned by the Indian state.

GVK is to fund the deal through internal accruals, according to Dow Jones Newswires. Bangalore Airport is expected to earn a profit of INR 300 million for the current financial year, on the back of a turnover of INR 4 billion.

GVK Airport Developers is a subsidiary of Indian group GVK Power and Infrastructure.