HYDERABAD: GVK Power & Infrastructure said on Thursday that it has completed the sale of its 10 per cent residual stake in Bangalore International Airport Limited (BIAL) to Fairfax India Holdings Corporation for a consideration of Rs 1,290 crore. GVK held these shares through its subsidiary, Bangalore Airport Infrastructure Developers Private Limited.
GVK had concluded an agreement with Fairfax in March, to sell a 33 per cent stake in BIAL for Rs 2,202 crore. It had retained a 10 per cent of stake and the management of BIAL. Subsequently, in June, GVK announced its decision to sell its residual stake to Fairfax India. The proceeds of this sale are expected to be used for reducing the debt obligations of GVK.
“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 our core focus area,” GVK Reddy, founder CMD of GVK, said in a statement.
“We will now focus on Mumbai as well as the Navi Mumbai airport for which we have won the bid. Capacity optimisation and real estate development will now be the priority areas for the existing Mumbai airport. We will also focus on selectively evaluating privatisation opportunities, as the reduced debt burden will give company flexibility and releases management bandwidth,” Reddy noted.