GVK Power acquires 12% stake in BIAL
Hyderbad-based Rs2,000 crore company GVK Power & Infrastructure Ltd (GVKPIL), has acquired a 12% stake in Bangalore International Airport Ltd (BIAL) for Rs485 crore from Flughafen Zurich AG through GVK Airport Developers Pvt Ltd (GVKADPL), a wholly-owned subsidiary of GVKPIL.
The move also signals GVK’s second foray into the airport projects space in the country, after being involved in the modernisation of the Mumbai airport. According to company sources, the acquisition will be completed on obtaining all the required approvals. Further the company has also entered into a Strategic Alliance Agreement (SAA) with Unique Airports Worldwide AG (Zurich Airport) to collaborate for new airport projects in the Indian sub-continent.
Flughafen Zurich AG, the operator of the Zurich airport in Switzerland, which earlier held a 17% stake in BIAL, will continue to have a 5% stake in the project and will also have board representation. The company has diluted its stake to fund its growth plans in India.