GVK Power and Infrastructure to pull out of Bangalore International Airport project

GVK Power and Infrastructure Limited on Saturday, said it has decided to exit from Bangalore International Airport Limited by selling its 10% stake to Fairfax India Holdings Corporation for Rs 1,290 crore (approximately $200 million).

According to a release issued here, the transaction is expected to be completed by early July 2017 and the sale proceeds will be used for reducing the debt component of GVK Group.

In March this year, GVK closed the deal which was signed in March 2016 with Fairfax India to sell a 33% stake in BIAL while retaining 10% stake and management of the company.

"Notwithstanding this sale, the airport sector will continue to be focus area for GVK. Our immediate focus will be Mumbai and Navi Mumbai airports and on selectively evaluating privatisation opportunities," GVK Reddy Founder Chairman and Managing Director of GVKPIL said.

He said the reduced debt burden will give the group the flexibility and releases management bandwidth to focus on other projects.