GVK Power to sell 10% stake in Bengaluru airport to Fairfax India
MUMBAI: GVK Power and Infrastructure Friday said it has exited the Bangalore airport by selling its residual 10% stake to Fairfax India Holdings for Rs 1,290 crore.
The transaction is slated to be completed in July, post which the co-chairman GVK Reddy and managing director Sanjay Reddy will resign from the company's board and management, said a person close to the development, who didn't want to be identified.
The company had on March 24 completed the sale of its 33% stake in the airport to the Indian unit of billionaire Prem Watsa's investment company for Rs 2,202 crore.
Fairfax also brought another 5% in the airport company from Flughafen Zurich AG, taking its holding to 38%.
Friday's deal takes its total ownership of India's third busiest airport to 48%.
“Notwithstanding this sale, the airports sector will continue to be a core focus area for GVK," said GVK Reddy in a statement.
“Our immediate focus will now be on Mumbai and Navi Mumbai airports and on selectively evaluating privatisation opportunities. The reduced debt burden gives us flexibility and releases management bandwidth to focus on these projects," he added.
GVK bought 12% of the airport company from Zurich Airport in November 2009 and followed it with a 17% stake from Larsen and Toubro. In 2012, it hiked its stake to 43% buying shares from Siemens Project Ventures GmbH.
The Bangalore airport is Fairfax Group’s largest investment in the country since it opened an India-dedicated investment company in 2014. It is also the company biggest bet on India’s infrastructure sector.
The transaction is slated to be completed in July, post which the co-chairman GVK Reddy and managing director Sanjay Reddy will resign from the company's board and management, said a person close to the development, who didn't want to be identified.
The company had on March 24 completed the sale of its 33% stake in the airport to the Indian unit of billionaire Prem Watsa's investment company for Rs 2,202 crore.
Fairfax also brought another 5% in the airport company from Flughafen Zurich AG, taking its holding to 38%.
Friday's deal takes its total ownership of India's third busiest airport to 48%.
“Notwithstanding this sale, the airports sector will continue to be a core focus area for GVK," said GVK Reddy in a statement.
“Our immediate focus will now be on Mumbai and Navi Mumbai airports and on selectively evaluating privatisation opportunities. The reduced debt burden gives us flexibility and releases management bandwidth to focus on these projects," he added.
GVK bought 12% of the airport company from Zurich Airport in November 2009 and followed it with a 17% stake from Larsen and Toubro. In 2012, it hiked its stake to 43% buying shares from Siemens Project Ventures GmbH.
The Bangalore airport is Fairfax Group’s largest investment in the country since it opened an India-dedicated investment company in 2014. It is also the company biggest bet on India’s infrastructure sector.