Fairfax India Expands Stake in Bangalore Airport to 74%
Fairfax India Takes Major Step in Airport Investment
Fairfax India Holdings Corporation, a prominent investment holding company, has recently made headlines by acquiring an additional 10% equity interest in Bangalore International Airport Limited (BIAL), a strategic move that expands its ownership stake to 74%.
Acquisition Details
The acquisition, valued at approximately $255 million, was executed through Fairfax India's wholly-owned subsidiary. The purchase price will be disbursed in three parts, with the first installment already paid upon closing of the transaction. Subsequent payments are scheduled for later dates, ensuring a structured approach to this significant investment.
Ownership Structure Changes
With this acquisition, Fairfax India significantly increases its influence in BIAL. Previously holding a 64% stake, the company now has 30.4% through direct ownership and 43.6% via its indirect subsidiary, Anchorage Infrastructure Investments Holdings Limited. The state owners, Airports Authority of India and the Karnataka State Industrial and Infrastructure Development Corporation, continue to hold their 13% stakes.
About Bangalore International Airport Limited
BIAL operates under a long-term concession agreement with the Government of India, which is set to last until 2068. This agreement grants BIAL exclusive rights to develop, design, finance, construct, maintain, and manage the Kempegowda International Airport Bengaluru (KIAB). Notably, KIAB is recognized as the first greenfield airport constructed in India through a public-private partnership.
Operational Excellence
Under BIAL's management, KIAB has achieved impressive milestones, becoming a key transportation hub in the region. The airport offers a wide range of services and continues to receive accolades for its operational efficiency and customer service excellence.
Fairfax India's Investment Philosophy
Fairfax India is committed to long-term capital growth while prioritizing capital preservation. The company strategically invests in public and private equity securities as well as debt instruments within India. Its focus extends to businesses that have significant ties to Indian markets, ensuring a robust investment strategy that aligns with the country's economic landscape.
Contact Information
For more detailed inquiries regarding this acquisition or Fairfax India's investment strategies, interested parties can reach out to John Varnell, Vice President of Corporate Affairs at (416) 367-475.
Frequently Asked Questions
What is the significance of Fairfax India's acquisition of BIAL?
This acquisition increases Fairfax India's share in BIAL to 74%, strengthening its influence over the operations and management of the airport.
How does this acquisition affect the ownership structure of BIAL?
Fairfax's ownership has increased from 64% to 74%, while the state-owned entities retain their 13% stakes each.
What is the future of the Kempegowda International Airport?
BIAL is set to manage the airport under a long-term agreement, enhancing its development and operational capacity through public-private partnership.
What is Fairfax India's investment focus?
Fairfax India aims for long-term capital appreciation, primarily investing in Indian businesses and those with significant links to India.
How can I contact Fairfax India for more information?
Interested individuals can reach John Varnell, Vice President of Corporate Affairs, at (416) 367-475 for further inquiries.
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