India's GVK sells 33 pct stake in Bengaluru airport to Fairfax for $323 mln

GVK Power & Infrastructure

28/03/2016 14:16

(Repeats to additional subscribers with no change to text) 
    NEW DELHI, March 28 (Reuters) - Airport operator GVK Power & 
Infrastructure Ltd  GVKP.NS  has sold a 33 percent stake in 
Bengaluru airport in southern India to Canada's Fairfax 
Financial Holdings  FFH.TO  to reduce debt, the company said in 
a statement on Monday.  
    Fairfax will pay 21.49 billion rupees ($322.75 million) for 
the stake, GVK said in a statement to the stock exchange.  
    The deal, likely to be completed by mid-2016, will help GVK 
reduce debt by 20 billion rupees and save up to 3 billion rupees 
a year in interest costs, the company 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 Reddy, company chairman and managing director, 
said. 
    Shares in GVK, which also operates Mumbai airport, ended 6 
percent higher. The Mumbai market  .BSESN  fell 1.46 percent. 
    Fairfax, headed by well-known contrarian investor Prem 
Watsa, made billions by correctly calling the 2008 financial 
crisis. In 2014, the Toronto-based company set up Fairfax India 
to boost the firm's investment in the country.  
    Fairfax India went public in 2015 and raised more than $1 
billion via its initial public offering. 
 ($1 = 66.5850 Indian rupees) 
 
 (Reporting by Aditi Shah; Editing by Sunil Nair) 
 ((aditi.shah@tr.com; +91-11 4954 8023; +91-11 3015 8023; 
Reuters Messaging: aditi.shah.thomsonreuters.com@reuters.net; 
twitter: @aditishahsays)) 
 
Keywords: GVK POWER FAIRFAX FIN/INDIA