REGIONAL AIRCRAFT MARKET ABUZZ WITH ACTIVITY
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.