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Fairfax India to buy addl 10 pc stake in Bengaluru airport operator BIAL

01:45 PM Dec 05, 2024 | PTI |

Fairfax India Holdings will buy an additional 10 per cent stake in Bengaluru airport operator BIAL, hiking its overall shareholding to 74 per cent.

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Bangalore International Airport Ltd (BIAL) is a joint venture between Fairfax India, Airports Authority of India (AAI) and Karnataka State Industrial and Infrastructure Development Corporation Ltd. The latter two entities have 13 per cent stake each.

“The transaction is expected to close in Q1 2025, upon which the additional 10 per cent equity interest in BIAL will be acquired by Fairfax India for, in aggregate, USD 255.0 million. The purchase price will be payable in three installments, with the initial installment to be paid on the closing date in Q1 2025,” Fairfax India said in a release.

The second and third installments are to be paid on or around August 31, 2025 and July 31, 2026, respectively.

Fairfax India is acquiring the 10 per cent stake from Siemens Projects Ventures.

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“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.

BIAL, under a concession agreement with the Indian government till 2068, has the exclusive rights to carry out the development, design, financing, construction, commissioning, maintenance, operation and management of the Kempegowda International Airport Bengaluru (KIAB).

KIAB is the first greenfield airport in India built through a public-private partnership, according to the release dated December 3.

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