GVK Group Pulls Out Of Bangalore International Airport
Bangalore: The renowned airport infrastructure conglomerate, GVK Power and Infrastructure Ltd. has decided to pull out from the Bangalore International Airport Limited (BIAL) by selling its residual 10 percent stake to the Fairfax India Holdings Corporation for Rs 1,290 crore.
The GVKPIL’s Founding Chairman and Managing Director G V K Reddy made it clear that his focus still remains on airport sector, despite the present sale.
The Bangalore Airport Infrastructure Development Project Ltd. (BAIDPL), an affiliate of GVK Power and Infrastructure Ltd, has 10 percent shares in the BIAL, which has been operating the Kempegowda International Airport Bengaluru (KIAB).
A press release issued by the company stated that the transaction is expected to be completed by early July 2017. The sale proceeds would be used to clear the debts of about Rs 30,000 crore, a Forbes India news site stated.
In March 2016, the GVK sold 33 percent of the total 43 percent stake in BIAL to Fairfax India retaining only 10 percent with it. The residual stake is now being sold.
The group has grabbed the tender for development of Navi Mumbai International Airport at an outlay of Rs 16,000 crore, earlier this year. Besides, it is now operating the Chhatrapati Shivaji International Airport in Mumbai. The sale of residual stake is expected to give flexibility to the group in handling these new projects.