Bangalore Management Change?

REPORTS IN the Indian press state that after acquiring a 29% stake in BIAL’s equity capital, the Hyderabad-based power and infrastructure business house, GVK Group, is set to take control of the company that runs the country’s third largest airport in terms of passenger traffic.
In a telephonic interview from Mumbai with the Deccan Herald, Sanjay Reddy, Vice Chairman, GVK Power and Infrastructure Ltd – the holding company for GVK Group’s operations in power and infrastructure, said GVK bought BIAL shares with the intention of running the airport.  The Deccan Herald quoted Mr Reddy as saying: “We are not a passive investor.  We will take an active part in the day-to-day running of BIAL.”
The GVK Group, which runs Mumbai airport through its 37% holding in the company (a South African consortium owns an equal stake), first bought 12% of BIAL in November 2009 from Zurich Airport.  GVK later acquired the entire 17% stake of Larsen and Toubro at the same price, taking the total holding to 29% at a cost of £155 million (US$248m).  (KB)