GVK Power and Infrastructure Ltd has agreed to sell a 33% stake in Bangalore International Airport Ltd (BIAL) to India-born Canadian billionaire Prem Watsa’s Fairfax India Holdings Corp. and Fairfax Financial Holdings Ltd for Rs.2,149 crore, seeking to raise money to repay debt.
On completion of the deal, GVK Power and Infrastructure’s debt will decline by Rs.2,000 crore and its interest costs will drop by some Rs.300 crore a year.The transaction, which will reduce GVK’s stake in the airport to 10%, is subject to customary closing conditions and third-party consent, including the agreement of creditors, and is expected to be completed by the middle of 2016. BIAL owns and operates the Kempegowda International Airport in Bengaluru under a 30+30 year concession agreement from the Indian government.
Siemens Project Ventures GmbH holds a 26% stake in the airport and Flughafen Zurich AG 5%. State-owned Airport Authority of India and Karnataka State Industrial and Infrastructure Development Corporation hold 13% each. Goldman Sachs and DSP Merrill Lynch are the financial advisors to GVK; Cyril Amarchand Mangaldas is the legal advisor.
- GVK is a leading Indian conglomerate with experience and expertise spanning diverse sectors including energy, resources, airports, transportation, hospitality and life sciences. Having already invested over Rs.24, 000 crore (USD 4.3 billion), GVK has projects in pipeline worth over another Rs.36, 000 crore (USD 6.6 billion) in India. After acquiring Australian coal mines in Queensland for USD 1.26 billion, GVK envisages an investment of USD 10 billion in mine, rail and port project. GVK’s strong workforce rises to every challenge and ensures timely execution of world-class projects.
- Founder: Gunupati Venkata Krishna Reddy
- Headquarters: Secunderabad
- Union Civil Aviation Minister – Ashok Gajapathi Raju
- Chairman of Fairfax Financial Holdings Prem Watsa
So lets do:
- Who is the Union Civil Aviation Minister of India?
- Who is the Chairman of Fairfax Financial Holdings?
- GVK Power and Infrastructure Ltd has agreed to sell a 33% stake in Bangalore International Airport Ltd (BIAL) to which company?
Source – The Hindu