GVK Power and Infrastructure said it has sold its residual 10% stake in Bangalore International Airport to Fairfax India Holdings for Rs.1,290 crore. The move will help it reduce “debt burden“ and focus on its Mumbai and Navi Mumbai airports, the company said.
The transaction is slated to be completed in July , after which GVK's co-chairman, GVK Reddy, and managing director, Sanjay Reddy , will resign from the airport's board and management, a person close to the development said, requesting anonymity .
On March 24, GVK had sold 33% stake in the airport to Fairfax, the Indian unit of billionaire Prem Watsa's investment company , for Rs.2,202 crore.
Fairfax has also bought another 5% in the airport company from Flughafen Zurich AG, taking its holding to 38%. The latest deal takes its total ownership in India's third-busiest airport to 48%.
GVK had bought 12% stake in the airport company from Zurich Airport in November 2009 and followed it with a 17% stake buy from Larsen & Toubro. In 2012, it increased its stake to 43%, buying shares from Siemens Project Ventures GmbH.
Siemens Project Ventures will now hold 26% while the governments of India and Karnataka will own 13% each.
BIAL is Fairfax group's largest investment in the country since it opened an India-dedicated investment company in 2014. It is also the company's biggest bet on India's infrastructure sector.