Friday, June 02, 2017

To build Navi Mumbai airport, GVK deserts Bangalore

New Delhi: In a bid to focus solely on building the badly needed Navi Mumbai airport and running Mumbai's CSIA, the debt-laden GVK Group has completely exited the Bengaluru Airport.
In a statement, GVK Power and Infrastructure Ltd said it has decided to sell its residual stake of 10% in Bangalore International Airport Limited (BIAL), held through its subsidiary, Bangalore Airport Infrastructure Developers Private Limited, (BAIDPL) to Fairfax India Holdings Corporation (Fairfax India) for a consideration of Rs 1,290 crore.
"The transaction is expected to be completed by early July 2017. The proceeds of this sale are to be used for further reducing the debt obligations of GVK," it said.
In March 2017, GVK closed a deal which was signed during March 2016 with Fairfax India to sell a 33% stake in BIAL. It had retained a 10% stake and the management of BIAL.
G V K Reddy, founder chairman & managing director of GVK, said, "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."
02/06/17 Saurabh Sinha/Times of India