GVK completes residual stake sale in Bangalore Airport to Fairfax India

Firm sells off its remaining 10% stake for Rs 1,290 cr, will focus on Mumbai, Navi Mumbai airports

GVK Power and Infrastructure Limited on Thursday announced the completion of the sale of its residual stake of 10 per cent in Bangalore International Airport Limited (BIAL) to Fairfax India Holdings Corporation for a consideration of Rs 1,290 crore.

Earlier in March, the company closed an agreement, which was signed last March, with Fairfax India to sell 33 per cent stake in BIAL. Subsequently, in June GVK announced its decision to sell the remaining stakes to Fairfax.

GVK chairman and managing director G V Krishna Reddy 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."

The company would now focus on Mumbai as well as the Navi Mumbai airports for which it had won the bid and also on selectively evaluating privatisation opportunities, according to Reddy. "Capacity optimisation and real estate development will now be the priority areas for the existing Mumbai airport," he added.