GVK up 2%; Ministry gives nod to Prem Watsa’s 33% stake buy

According to a media report, the ministry of civil aviation has given a security clearance to Canadian billionaire Prem Watsa’s proposed investment of Rs 2,149 crore to buy 33% in Bengaluru airport.

GVK Power & Infrastructure soared over 2 percent intraday on Tuesday as investors rejoiced on the buzz that the aviation ministry has approved its stake sale plan. The Civil Aviation Ministry gave a security clearance to the Canadian billionaire investor Prem Watsa’s proposed investment to buy 33 percent stake in Bengaluru airport, The Economic Times reported on Tuesday. The nod will now clear the decks for the deal to be completed soon, the publication’s report added. The stake purchase proposition by Watsa’s Fairfax India Holdings Corporation and Fairfax Financial Holdings was to the tune of Rs 2,149 crore. The stock has staged a significant recovery after its fall of nearly 15 percent in the past three months to an increase of over 6 percent in the last one month. Earlier in January, it had seen an intraday jump of 13 percent on buzz that the company may have been the lone bidder for Rs 16,000-crore Navi Mumbai airport. At 09:38 hrs GVK Power & Infrastructure was quoting at Rs 5.90, up Rs 0.03, or 0.51 percent. It has touched an intraday high of Rs 6.00 and an intraday low of Rs 5.90.

News Source: www.moneycontrol.com