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ShareHyderabad: The Bengaluru International Airport Ltd (BIAL) has a Hyderabadi connection now. Infrastructure major GVK Power and Infrastructure Ltd (GVKPIL), has decided to acquire 12% equity stake from airport promoter and operator Unique Zurich Airport for a consideration of Rs484.6 crore. The deal gives the 18-month-old greenfield airport an enterprise value of Rs3,800 crore.
Though nothing is on the cards right now, GVK is keen on buying out any other stake holder willing to offload equity in the often controversy ridden airport.
After offloading the equity, Zurich Airport will continue to hold 5% equity in the airport in which multinational infrastructure player Siemens holds 40%, while Larsen & Toubro holds 17%.
The Karnataka State Industrial and Infrastructure Development Corporation (KSIIDC) and the Airports Authority of India (AAI), hold 13% each in it.
With the current deal with Zurich, GVK joins the ranks of leading players in the aviation infrastructure sector. It already operates the Mumbai International Airport Ltd (MIAL).
"It is a strategic fit for our profile," GVK's CFO Isaac George told DNA Money, adding, the group preferred to be majority owner and was open to increasing stake if any of the existing promoters were willing to offload.
The business potential assessment for BIAL available with GVK indicates the airport, which would make about Rs30-35 crore profit in the current year, has a promising future compared with other such airports in the country today.
Making it more attractive is the 515-acre land parcel available with it for monetisation. "We are not joining the airport as a financial partner or as just an investor. We have long-term plans for the sector and this deal takes it forward," George said.
The Bangalore airport has a passenger traffic of about 9.8 million and non-aero revenues, a key factor for profitability, of about 40%. "Bangalore is going to be the third largest airport in the country next to Delhi and Mumbai," he said.
GVK is also excited about the profile of the passengers using the airport vis-a-vis other airports in locations such as Hyderabad.
"I don't want to compare with others, but the facility in Bangalore has been seeing quality passengers. Being a software hub, it has white collar clientele instead of the Dubai-bound variety who do not spend in other airports. So, these are the passengers that are going to spend more even at the airport. We are certain about the prospects and we hope we have got a good deal," George explained.
Announcing the airport operator's intention to offload equity last month, Marcel Hungerbhuler, CEO of BIAL had said the sale of equity would not impact its operations.
