GVK Power and Infrastructure on Monday announced acquisition of an additional 14 per cent holding in Bangalore International Airport (BIAL) from its partner Siemens Project Ventures for Rs 620 crore, to become the majority stake holder at 43 per cent.
German Siemens' holding will come down from 40 per cent to 26 per cent in BIAL. Siemens decision on stake sale comes after the lock-in period got over in June.
GVK will buy the stake at a price of Rs 114 a share, totalling Rs 620 crore.
In 2009, GVK had acquired 17 per cent stake in BIAL from
Larsen and Toubro (L&T) for Rs 686 crore and it acquired 12 per cent of Zurich Airport's stake in BIAL for Rs 484.6 crore.
Both the deals priced BIAL shares at Rs 105 apiece.
Thus, Monday's deal is 8.5 per cent premium over the 2009 valuation of the airport.
The move by GVK comes on the heels of the Singapore airport operator Changi's reported offer to buy the Siemens stake at a higher price than what GVK had initially reported to have offered.
The Karnataka government and the Airports Authority of India hold 13 per cent each in BIAL. Zurich Airports owns the remaining 5 per cent.
Announcing the decision, GVK Chairman G V Krishna Reddy said, "This (buying 14 per cent of Siemens stake) will be a key strategic development for us to further underscore our commitment to the domestic airport sector. We are confident that BIAL will continue to add value to our airport business and will meet its objective to become the hub for the Southern market."
Siemens could not be reached for comments.
GVK also owns over 50 per cent stake in the Mumbai airport.
A release from GVK said that subject to certain terms and compliances, it has exercised its right of first refusal to acquire 53,844,000 equity shares, constituting 14 per cent of the issued capital of BIAL with a face value of Rs 10 each, from Siemens Project Ventures, at Rs 114 per equity share or about Rs 620 crore.
The shareholder agreement between GVK and Siemens had envisaged a lock-in period for Siemens along with a right of first refusal, which means as and when one of the partners decides to exit, the other will have the first right to purchase the stake of the other.
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