GVK Power and Infrastructure Ltd. on Friday said, it has decided to exit from Bengaluru International Airport Ltd. (BIAL) by selling its remaining 10 percent stake to Fairfax India Holdings Corporation for Rs 1,290 crore.
The transaction is expected to be completed by early next month, said the company's filing to the exchanges.
Earlier, airport operator GVK Ltd., sold 33 percent stake in BIAL for Rs 2,202 crore to Prem Watsa-led Fairfax India in March 2017. The group said the proceeds will be used to retire some of the company's high interest debt.
GVK Power has a total debt of Rs 17,742 crore as of March 31, 2017.
Our immediate focus now will be on Mumbai and Navi Mumbai airports and on selectively evaluating privatisation opportunities. The reduced debt burden gives us flexibility and releases management bandwith to focus on these projects.GVK Reddy, Founder Chairman and Managing Director, GVK
GVK had emerged as the highest bidder for the new Navi Mumbai airport in March.
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