Fairfax India to buy 10% more in BIAL

BENGALURU: Canadian billionaire Prem Watsa's Fairfax India is acquiring an additional 10% stake in Bangalore International Airport from Siemens Project Ventures.

The transaction, valued at $255 million, will increase Fairfax's ownership to 74% in the airport venture. Following the transaction, Fairfax India's wholly-owned subsidiary will own 30.4%, and the remaining 43.6% will be held by its subsidiary Anchorage Infrastructure Investments Holdings.

"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," Watsa said.

The transaction is expected to close in the first quarter of next year. The agreed purchase price will be disbursed in three separate payments, with the first payment scheduled upon deal completion in the first quarter of next year. The subsequent payments are scheduled for Aug 2025 and July 2026, respectively.

The transaction is subject to approval by Fairfax India's shareholders at a special meeting of shareholders expected to be held in Jan next year. The stakes held by Airports Authority of India and Karnataka State Industrial and Infrastructure Development Corporation in BIAL continue to be maintained at 13% each. Last year, Fairfax acquired a 7% stake for $175 million, increasing its stake to 64%.

BIAL, a private company based in Bengaluru, under a concession agreement with govt until 2068, has the exclusive rights to carry out the development, design, financing, construction, commissioning, maintenance, operation, and management of the Kempegowda International Airport Bengaluru through a public-private partnership. BIAL clocked $305 million in revenue last year.

In June 2019, Fairfax India floated Anchorage Infrastructure Investments Holdings - its flagship investment vehicle for airports and other infrastructure investments in the country.