Siemens sells 14% of Bangalore Airport to GVK

The deal sees Siemens Project Ventures reduce its stake in the Indian airport from 40% to 26%, while GVK Power & Infrastructure takes over as the largest shareholder by increasing its interest from 29% to 43%.

Siemens Project Ventures, part of the financial services arm of German industrial giant Siemens, has sold a 14 percent stake in India’s Bangalore International Airport to Bangalore Airport & Infrastructure Developer Private Limited,  a subsidiary of Indian infrastructure firm GVK Power & Infrastructure Limited (GVK).

The value of the stake sale was not offically disclosed, although media reports cited a price of around $135 million.

As a result of the transaction, Siemens Project Ventures has reduced its stake in Bangalore International Airport Limited (BIAL), the project company that owns and operates the airport, from 40 percent to 26 percent. GVK, meanwhile, becomes the largest individual shareholder by increasing its interest from 29 percent to 43 percent.

The €460 million project to build the new Bangalore International Airport commenced in 1999, with Siemens Industry Sector and Siemens Ltd India handling contractual structuring, project management, engineering and assembly until the airport became operational in 2008. The project was the first public-private partnership in the Indian airport sector.

Since becoming operational in May 2008, the airport has shown a growth rate of more than 30 percent per year, and currently has around 13 million passengers annually. Figures produced by the Airports Authority of India indicated Bangalore was the fourth-busiest airport in India last year behind Delhi, Mumbai and Chennai.

Aside from Siemens Project Ventures and GVK, other shareholders in BIAL are the government of India, the government of Karnataka and Unique Zurich Airport, the company that runs Switzerland’s Zurich International Airport.

In March this year, GVK bought an additional 13.5 percent stake in Mumbai International Airport from South Africa’s Bidvest Group for $287 million, taking its shareholding in that airport to 50.5 percent.