GVK Group bets big on Bengaluru international airport
The GVK Group has big plans for Bengaluru international airport. And it all begins with an investment of Rs 1,000 crore, reports CNBC-TV18 Vineeta Athrey.
Bengaluru International Airport is all set to get a makeover as the GVK Group expands the airport’s terminal 1 over the next 18 months. This Rs 1,000 crore facelift comes in the form of increased floor area – the 72,000 square metre terminal will become a 134,000 square metre terminal. Funds for this will be through a combination of debt and equity.
GV Krishna Reddy, CMD, GVK Power and Infrastructure, “This Rs 1000 crore, 30% is equity, Rs 700 cr is loan. The loan part, bankers have already given consent. They will give loan. The Rs 300 cr, partly would be internal generation and balance we’ll bring in.”
GVK, which holds 29% in the airport, is also set to acquire a majority stake in the airport next year. That’s when Siemens might look to offload a 14% stake in it, since the lock-in period for this stake comes to an end. GVK plans to exercise the first right of refusal.
Reddy adds, “We’ve already made an example to buy from L&T, Zurich airport at Rs 105 per share. That’s all we can pay not more. No other valuation and other things.”
With the passenger traffic at the Bengaluru International Airport expected to touch 17.2 million per annum by 2015, up from the current 11.1 million, GVK’s aggressive plans for acquiring majority stake in the airport come as no surprise.
Source:- Moneycontrol
