GVK Power exits Bengaluru airport, sells remaining stake to Fairfax
GVK Power and Infrastructure says it has sold its residual stake worth Rs1,290 crore in BIAL to Fairfax India Holdings
GVK Power and Infrastructure Ltd on Thursday said it had sold its residual stake worth Rs1,290 crore in Bangalore International Airport Ltd (BIAL) to Canadian billionaire Prem Watsa’s Fairfax India Holdings Corp.
In May 2016, the debt-laden infrastructure developer had sold a 33% stake in BIAL to Fairfax for Rs2,149 crore.
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The sale of the 10% stake is part of the GVK group’s efforts to raise funds to reduce debt and fund upcoming projects such as the Navi Mumbai airport, which it was awarded recently.
The group has a debt of around Rs32,000 crore.
“Since deleveraging is currently our top priority, we decided to part ways with BIAL. We will focus on the Mumbai as well as Navi Mumbai airports, for which we have won the bid and also on selectively evaluating privatization opportunities,” said G.V.K. Reddy, founder-chairman and managing director of GVK Power and Infrastructure.
GVK owns and operates the Chhatrapati Shivaji International Airport in Mumbai.
The Navi Mumbai airport is expected to be built at a current estimate of Rs16,000 crore, more than what has been spent on the modernization of Mumbai airport, Mint reported on 2 June.