GVK increased its stakes in Mumbai and Bengaluru airports today following the closure of two multi-million dollar deals with fellow stakeholders.
The Indian investment company's subsidiary Bangalore Airport & Infrastructure Developer Private Limited (BAIDPL) has acquired an additional 14% stake in Bangalore International Airport Limited (BIAL), operator of Bengaluru International Airport, from Siemens Project Ventures for $124 million, increasing its ownership from 29% to 43%.
GVK also completed the acquistion of a 13.5% equity stake in Mumbai International Airport Ltd (MIAL) from Mauritius-based Bid Services Division for US$231 million, giving it a controlling stake of 50.5% in the Chatrapati Shivaji International Airport.
GVK gained an inital stake in BIAL in November 2009 when it bought 12% of Unique Zurich Airport's 17% shares, it then increased this to 29% with the acquistion of Larsen and Toubro's 17% stake.
The remaining 57% shares are owned by Unique Zurich Airport (5%), Siemens Project Ventures (26%) and the state government of Karnataka (26%).
Other stakeholders in MIAL include the Airports Authority of India (AAI) with a 26% stake, Bid Services Division (13.5%) and the the Airports Company South Africa (ASCA) with 10%.
Speaking on the day of the acquisitions, Dr G V Krishna Reddy, chairman of GVK Power & Infrastructure Limited said: “GVK has always been a frontrunner in the airports sector in India, given its experience in managing, operating and developing airports in both Mumbai and Bengaluru.
"The completion of the acquisition of the additional 14% stake in BIAL helps us further consolidate Bengaluru International Airport as the leading airport destination in southern India. Moreover we believe that this strategic transaction will be very crucial to the next phase of growth of Bengaluru International airport."