GVK Power and Infrastructure today said it will divest 33 per cent stake in Bangalore International Airport Ltd (BIAL) to Fairfax India Holdings Corporation for Rs 2,149 crore.
In a BSE filing, the company said it “will divest 33 per cent stake in Bangalore International Airport to Fairfax India Holdings Corporation through their wholly-owned subsidiaries in Mauritius for an aggregate investment of Rs 2,149 crore”.
It further said: “Upon completion of this transaction, there would be reduction of debt burden of around Rs 2,000 crore and would also result in savings of interest costs to the extent of Rs 300 crore per annum.”
The transaction is subject to customary closing conditions and third party consents including lender consents, and is expected to be completed by mid-2016.
GVK Power and Infrastructure stock was trading higher by 5.83 per cent at Rs 7.08 during the afternoon session on the BSE.