GVK buys 12 per cent in Bangalore airport from Swiss company
05 Nov 2009
GVK Airport Developers Pvt Ltd, a unit of GVK Power & Infrastructure Ltd, today disclosed its acquisition of a 12-per cent stake in Bangalore International Airport Ltd for Rs485 crore. The stake was purchased from Flughafen Zuerich AG, it said in a statement to the stock exchanges.
The statement added that the company has entered into a strategic pact with Unique Airports Worlwide AG (which runs Zurich Airport) for new airport projects in the Indian sub-continent.
GVK is a leading infrastructure developer in India and also lead promoter of Mumbai International Airport. The company had reported a 45.19 per cent increase in net profit to Rs44.23 crore for the second quarter ended 30 September. Revenues increased over four-fold to Rs492.32 crore during the quarter from Rs109.49 crore.
Acquisition of BIAL shares will serve GVK's strategic business objective of expanding into airport business in India and will mark its presence in Southern India. With this acquisition, GVK will emerge as the largest private airport player in India.
Chairman and managing director of GVKPIL, G V Krishna Reddy said, ''The acquisition in BIAL and the strategic alliance with Zurich Airport heralds the beginning of a new era in the GVK Airports business and will provide the impetus to grow into new markets and territories.''
Standard Chartered Bank acted as advisors to GVK on this transaction.