GVK Power and Infrastructure Ltd has completed the sale of its residual stake of 10 per cent in Bangalore International Airport Ltd (BIAL) to Fairfax India Holdings Corporation for a consideration of ₹ 1,290 crore (about $200 million).

The diversified GVK held these shares through its subsidiary, Bangalore Airport Infrastructure Developers Private Ltd.

Earlier in March 2017, GVK had concluded an agreement which was signed during March 2016 with Fairfax India to sell a 33 per cent stake in BIAL.

GVK had retained a 10 per cent stake and the management of BIAL. Subsequently, in June 2017, GVK announced its decision to conclude the sale of the residual stake to Fairfax India, subject to necessary consents and approvals.

Commenting on the development, G V K Reddy, Founder Chairman & Managing Director of GVK, said, “Since deleveraging is currently our top priority, we decided to part ways with BIAL. However, we would like to reiterate that the Airports sector will continue to be a core focus area for GVK.”

“We will now focus on Mumbai as well as the Navi Mumbai airport for which we have won the bid and also on selectively evaluating privatisation opportunities. Capacity optimisation and real estate development will now be the priority areas for the existing Mumbai airport,” Reddy added.

The Hyderabad-based construction-cum-infrastructure company has presence across energy, airports, transportation, hospitality and life sciences. Lately, its finances have been under pressure due to low plant load factor in power plants fired by gas and coal.

GVK has around 1,500-lane km expressway projects under operations and owns and operates India’s first brownfield airport-Chhatrapati Shivaji International Airport, Mumbai.

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