GVK Power and Infrastructure to sell 33 per cent stake in BIAL to Fairfax Holdings

GVK Power and Infrastructure Limited will sell 33 per cent equity stake in Bangalore International Airport Limited (BIAL) to the Fairfax India Holdings Corporation and Fairfax Financial Holdings Limited for an aggregate of Rs 21.49 billion. The disinvestment process, which will reduce GVK’s shareholding in BIAL to 10 per cent, is likely to be completed by mid-2016 and is subject to customary closing conditions and third-party consents including lender consent. The transaction will help reduce the company’s debt burden by Rs 20 billion and save Rs 3 billion annually on interest costs. Goldman Sachs and Bank of America Merrill Lynch are advisors to the deal. The company will look forward to partnering with Fairfax in developing the Kempegowda International Airport, Bengaluru, through its next stage of expansion which includes a world-class terminal (T2) and a new runway.

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