GVK Power and Infrastructure has announced the completion of the sale of its residual stake of 10 per cent in Bangalore International Airport (BIAL), held through its subsidiary, Bangalore Airport Infrastructure Developers (BAIDPL) to Fairfax India Holdings Corporation (Fairfax India) for a consideration of INR 1,290 crore (approximately US$ 200 million).
In March 2017, GVK closed an agreement which was signed during March 2016 with Fairfax India to sell a 33 per cent stake in BIAL. It had retained a 10 per cent stake and the management of BIAL. Subsequently, in June 2017, GVK announced its decision to conclude the sale of this 10 per cent residual stake to Fairfax India, subject to necessary consents and approvals.
Dr GVK Reddy, founder chairman and managing director, GVK while speaking on the development, said, “Since deleveraging is currently our top priority, we decided to part ways with BIAL. However, we would like to reiterate that the airports sector will continue to be a core focus area for GVK. We will now focus on Mumbai as well as the Navi Mumbai airport for which we have won the bid and also on selectively evaluating privatisation opportunities. Capacity optimisation and real estate development will now be the priority areas for the existing Mumbai airport.”