GVK sell its stake in BIAL to Fairfax India

On Friday, GVK Power and Infrastructure Limited reported that the company has decided to sell its 10 per cent stake in Bengaluru International Airport Limited  It was expected that the transaction will be completed by early next month (July 2017).

The net proceeded amount from the sale was expected to be used for diminishing its debt obligations.

On March 24, 2017, GVK had sold 33 per cent stake in the airport to Fairfax for about $330 million. In that deal, GVK has retained 10 per cent of the stake as well as the management of the company.  

“Notwithstanding this sale, the airports sector will continue to be a core focus area for GVK. We had entered BIAL in 2010 when the airport was going through a tough phase as the capacity was severely constrained. Over the last seven years, we have worked very hard to transform BIAL into a world class airport. The airport is now ready for another phase of expansion with a new runway and a new terminal to be constructed. However, we have decided to part ways with BIAL as deleveraging is top priority,” GVK Reddy, founder chairman and managing director of GVK, said in a statement.