GVK Power and Infrastructure has announced that it has completed the stake sale in Bangalore International Airport Project (BIAL).
It has divested 33 per cent of its stake in Bangalore Airport and Infrastructure Developers — a wholly owned subsidiary of BIAL — to Fairfax India Holdings Corporation, for an aggregate amount of Rs 2,202 crore ($336.18 million).
The company had first announced the stake sale deal with Fairfax in March 2016, while it took one year to complete the process due to delay in foreign direct investment (FDI) clearances, among other things. Post sale, GVK group would have 10 per cent stake in this profit-making airport asset.
“We reiterate that our primary focus is on deleveraging our balance sheet, and all proceeds from this stake sale shall be used to bring down our debt obligations to our lenders. We look forward to partnering with Fairfax and working with all the stakeholders in developing Kempegowda International Airport through its next stage expansion,” said GVK Founder, Chairman and Managing Director, G V Krishna Reddy.