Bangalore: Leading infrastructure developer GVK Power and Infrastructure has acquired 17 percent in Bangalore International Airport Ltd (BIAL) from Larson and Toubro (L&T) for Rs.686 crore (Rs.6.86 billion), the company said Sunday.

According to a statement, the acquisition was priced at Rs.105 per share. Post-acquisition, GVK will hold 29 percent in BIAL and L&T will exit from the consortium.

“The acquisition of additional stake in BIAL is in line with our objective of expanding GVK’s presence in the airport business,” GVK chairman and managing director G.V. Krishna Reddy said in the statement.

GVK, which operates India’s busiest airport -- the Chhatrapati Shivaji International Airport in Mumbai —— bought 12 percent stake in BIAL from Unique Zurich Airport for Rs.484 crore (Rs.4.84 billion) Nov 5 through its subsidiary, GVK Airport Developers.

Post—dilution, Zurich Airport holds five percent in BIAL.

GVK has also entered into a strategic alliance with Unique Zurich Airport, which is part of a consortium that operates the Bengaluru airport, to jointly pursue airport development projects in the Indian subcontinent.

“As BIAL embarks on the next phase of expansion, we wish to partner with all stakeholders to ensure that Bengaluru International Airport further consolidates its position as the leading airport destination in southern India,” Mr. Reddy said.

The other private partner in the consortium is Siemens Projects Ventures with 40 percent equity stake. The state-run Airport Authority of India (AAI) and the Karnataka State Investment and Industrial Development Corp own 13 percent each.

The Bengaluru international airport commenced operations May 23, 2007 at Devanahalli, about 35 km from the city centre.

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