RE­GIONAL AIR­CRAFT MAR­KET ABUZZ WITH AC­TIV­ITY

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Airport op­er­a­tor GVK Power and In­fra­struc­ture has sold ten per cent stake in Ban­ga­lore In­ter­na­tional Airport Ltd (BIAL) to Fair­fax In­dia Hold­ings Cor­po­ra­tion for 1,290 crore. BIAL that op­er­ates the Kem­pe­gowda In­ter­na­tional Airport. GVK was in the project through its sub­sidiary, Ban­ga­lore Airport In­fra­struc­ture Devel­op­ers Pvt Ltd (BAIDPL). The deal is ex­pected to be closed in July 2017. The pro­ceeds of the sale will re­duce GVK’s debt obli­ga­tions and Fair­fax will in­crease its stake in BIAL to 48 per cent, mak­ing it the sin­gle-largest in­vestor in the airport. In March this year, GVK had sold 33 per cent of its stake to the Prem Watsa-backed Fair­fax for a con­sid­er­a­tion of 2,200 crore. “We had en­tered BIAL in 2010 when the airport was go­ing through a tough phase as the ca­pac­ity was se­verely con­strained. Over the past seven years, we have worked very hard to trans­form BIAL into a world-class airport. The airport is now ready for an­other phase of ex­pan­sion with a new run­way and a new ter­mi­nal to be con­structed,” GVK Reddy, founder Chair­man and Man­ag­ing Di­rec­tor of GVK, said in a state­ment. The com­pany will now fo­cus on the Mumbai and Navi Mumbai air­ports and se­lec­tively eval­u­ate pri­vati­sa­tion op­por­tu­ni­ties, he added.

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