Zurich Airport has reached an agreement to sell its 5 percent minority shareholding in Bangalore International Airport (BIAL) in India to Fairfax Financial Holdings Ltd for USD 48.9 million before taxes.
"We have reached an agreement with a wholly-owned subsidiary of Fairfax Financial Holdings Ltd," a Zurich Airport spokesperson told PTI in an e-mail.
The transaction is subject to customary closing conditions and is expected to be completed within the third quarter of 2016, as per a statement issued by the Swiss company.
BIAL owns and operates the Kempegowda International Airport Bengaluru (KIAB) under a 30-year concession agreement, with a further 30-year extension option from the Centre.
Recently, GVK announced its plan to sell a 33 percent stake in BIAL to Fairfax India Holdings Corp and Fairfax Financial Holdings Ltd to raise money to repay debt.
The move would leave GVK's stake in the airport company at 10 percent.
KIAB has the distinction of being the first greenfield airport in the country built by the private sector under a public-private partnership.
Since the beginning of operations in 2008, the airport has complied with the highest international standards and has been named as the 'Best Regional Airport in Central Asia' by Skytrax in 2015.
Since the start of construction in 2005, Zurich Airport successfully transferred its operational expertise to BIAL through an operations, management and services agreement, which helped KIAB transform into India's third-largest and one of the fastest growing airports.
Zurich Airport's role has been gradually reduced to a minority shareholder, leading to the decision to monetise the remaining 5 per stake in BIAL.
In 2009, Zurich Airport already sold 12 percent of its shareholding in BIAL to GVK Power & Infrastructure Ltd, it said.
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