Indian company GVK Power and Infrastructure has sold its shares in Bangalore International Airport (BIAL) to Fairfax India Holdings for a consideration of Rs12.9bn ($200m).
GVK group held the 10% residual stake through its subsidiary Bangalore Airport Infrastructure Developers (BAIDPL). BIAL owns and operates Kempegowda International Airport in Bangalore, India.
GVK founder, chairman, and managing director Dr G V K Reddy 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 and the Navi Mumbai airport for which we have won the bid, as well as on selectively evaluating privatisation opportunities.
“Capacity optimisation and real estate development will now be the priority areas for the existing Mumbai airport.”
It has been reported that the company divested its shares to reduce debt and invest on its future projects. The GVK group is claimed to have a debt of approximately Rs320bn ($4.96bn), reported Livemint.