GVK Power and Infrastructure has completed the sale of its residual 10% stake in Bangalore International Airport Limited (BIAL) to Fairfax India Holdings Corporation for a consideration of Rs 1,290 crore. BIAL operates Kempegowda International Airport.
GVK Group had held the stake in its airport subsidiary, Bangalore Airport Infrastructure Developers. Fairfax is owned by Prem Watsa, a Canadian billionaire.
In March, GVK had closed an agreement with Fairfax India to sell 33% stake in BIAL for a consideration of Rs 2,149 crore. At that time, the company retained 10% stake and the management of BIAL.
In June, GVK announced its decision to conclude the sale of the remaining 10% stake, which was subject to necessary approvals.
With this deal, Fairfax has become the largest shareholder (48%) of BIAL, followed by Siemens (26%), Government of Karnataka (13%) and Airports Authority of India (13%).
Energy Minister D K Shivakumar objected to the deal citing security concerns.
G V K Reddy, founder chairman & managing director of GVK, said, “Since deleveraging is currently our top priority, we decided to part ways with BIAL. However, we would like to reiterate that the airport sector will continue to be a core focus area. We will now focus on Mumbai as well as the Navi Mumbai airport.”
Published 13 July 2017, 19:00 IST