Mumbai: GVK Power and Infrastructure Ltd is going to sell 33% stake in Bangalore International Airport Limited (BIAL) to Fairfax India Holdings Corp. and Fairfax Financial Holdings Ltd for Rs.2,149 crore, as an aggregate investment.
The Fairfax is owned by Canadian billionaire Prem Watsa who is also known as ‘Warren Buffet of Canada. Fairfax India went public in 2015 and raised more than $1 billion via its initial public offering.
GVK said in a statement to the stock exchange that the deal is likely to be completed by mid- 2016 will help GVK reduce debt by Rs 2,000 crore and save up to Rs 300 crore a year in interest costs.
The company chairman and managing director G V K Reddy said.”This is an important and successful milestone in deleveraging our balance sheet, and all proceeds from this stake sale shall be used to bring down our debt obligations to our lender.”
GVK said in a statement that the company would continue remain a long term investor in airport assets in India.