GVK Power and Infrastructure Limited which is leading Indian conglomerate on Friday said it has decided to exit from Bangalore International Airport Limited by selling its 10 per cent stake to Fairfax India Holdings Corporation for Rs 1,290 crore.
According to a release issued, the transaction is expected to be completed by early July 2017 and the sale proceeds will be used for reducing the debt component of GVK Group.
In March this year, GVK closed the deal which was signed in March 2016 with Fairfax India to sell a 33 per cent stake in BIAL while retaining 10 per cent stake and management of the company.
"Notwithstanding this sale, the airport sector will continue to be the focus area for GVK. Our immediate focus will be Mumbai and Navi Mumbai airports and on selectively evaluating privatisation opportunities," said GVK Reddy, Founder Chairman and Managing Director of GVKPIL.
He said the reduced debt burden will give the group the flexibility and releases management bandwidth to focus on other projects.
GVK is a leading Indian conglomerate with diversified interests across various sectors of economic significance.