Fairfax India To Buy Additional 10% Stake In Bengaluru Airport Operator BIAL
The purchase price will be payable in three installments, with the initial instalment to be paid on the closing date.
Fairfax India Holdings is set to buy another 10% stake in Bengaluru airport operator Bangalore International Airport Ltd., increasing its overall shareholding to 74%.
BIAL is a joint venture between Fairfax India, Airports Authority of India and Karnataka State Industrial and Infrastructure Development Corporation Ltd. with the latter two having a 13% stake each.
"The transaction is expected to close in first quarter of 2025, upon which the additional 10% equity interest in BIAL will be acquired by Fairfax India for, in aggregate, $255.0 million," Fairfax India said in a release.
The purchase price will be payable in three installments, with the initial instalment to be paid on the closing date, the statement said. The second and third instalments are to be paid on or around Aug. 31, 2025 and July 31, 2026, respectively.
Fairfax India is acquiring the 10% stake from Siemens Projects Ventures.
"We would like to thank Siemens for the great partnership we have enjoyed since our initial investment in BIAL in 2017. This additional investment in BIAL is a testament to our belief in the continued growth opportunities presented by BIAL and a phenomenal track record demonstrated by Hari Marar and his management team in capitalising on those opportunities," Prem Watsa, Canada-based billionaire and Founder of Fairfax India, said in the release.
The Kempegowda International Airport in Bengaluru is exclusively BIAL's to develop, design, finance, build, commission, maintain, operate, and manage under a concession arrangement with the Indian government that lasts until 2068.
According to the Dec. 3 statement, KIAB is India's first greenfield airport constructed through a public-private collaboration.
(Inputs From PTI.)
