Fairfax to buy Bangalore Airport stake for $322mn from GVK

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Indian airport operator GVK Power & Infrastructure Ltd. said it sold a stake in its Bengaluru aerodrome to Fairfax Financial Holdings Ltd., helping cut debt. The shares rose.
Fairfax will buy 33 percent of Bangalore International Airport Ltd. for 21.49 billion rupees ($322 million), GVK said in a statement to the Mumbai stock exchange on Monday.
GVK, which also operates power plants, said the deal will help it reduce debt by 20 billion rupees, apart from saving interest costs of 3 billion rupees a year. The transaction is likely to be completed by the middle of this year, the company, also the operator of the airport in Mumbai, said in the statement.
Shares of GVK jumped as much as 10 percent to 7.40 rupees, the highest intraday level in more than a month.
The company, which will retain a 10 percent stake in the airport in Bengaluru, previously known as Bangalore, will sell the stake through Mauritius-based units of Fairfax, headed by Prem Watsa.
Watsa, 65, founded Toronto-based Fairfax in 1985. He’s modeled his investment style and strategy after value investor Warren Buffett. Fairfax gained from the 2008 financial crisis when Watsa bet on declines in the creditworthiness of U.S. banks and insurers. This year, he’s been investing in inflation-linked securities and short positions on stocks and markets.
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 (US$4.3 billion), GVK has projects in pipeline worth over another Rs.36,000 crore (US$6.6 billion) in India. After acquiring Australian coal mines in Queensland for US$1.26 billion, GVK envisages an investment of US$10 billion in mine, rail and port project. GVK’s strong workforce rises to every challenge and ensures timely execution of world-class projects.
GVK’s foray into the aviation sector began with the modernisation of Chhatrapati Shivaji International Airport (CSIA) in Mumbai. GVK has also become one of the largest airport operators in the country handling huge traffic.

of over 52 mppa at these two airports.
GVK CSIA’s new integrated Terminal 2 is an iconic global mega structure that integrates world-class design, infrastructure and operational efficiency.

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