Flying high

Mumbai, Nov. 5: GVK Power and Infrastructure has acquired a 12 per cent stake in Bengaluru International Airport from Zurich Airport for Rs 484.6 crore.

Before the sale, Zurich Airport held 17 per cent in Bengaluru International Airport.

The stake buy will give GVK Power representation to the airport company’s board.

The acquisition was done through GVK Airport Developers Pvt Ltd, a wholly owned subsidiary of GVK Power.

GVK Power is an infrastructure developer in India and is the lead promoter of the Mumbai International Airport.

GVK has also entered into a strategic alliance with Zurich Airport to jointly pursue opportunities in airport development projects in India.

Zurich Airport is the operator of Bengaluru International Airport.

According to GVK, the acquisition of BIAL shares marks its entry into the fast growing aviation market in south India.

GVK is expected to emerge as the largest private airport player in India.

Among other investors in BIAL, Larsen & Toubro holds 17 per cent, while the state government and the Airports Authority of India own 26 per cent. Siemens also has a 40 per cent stake.

There are reports of L&T planning to offload part of its stake in BIAL, and GVK is likely to be the buyer.

GVK is engaged in power, airports, roads, oil and gas and urban infrastructure and has invested over Rs 5,000 crore in its businesses.