Fairfax India expands ownership with additional 3% stake acquisition in Bangalore International Airport Limited

T2 of Bengaluru airport

Fairfax India Holdings Corporation has announced its acquisition of an additional 3% equity interest in Bangalore International Airport Limited (BIAL).

Fairfax India said it acquired the additional stake from Siemens Project Ventures GmbH, a division of Siemens Financial Services (SFS) at a cost of $75 million (approximately INR 6.2 billion).

With this latest transaction, Fairfax India's overall share ownership in BIAL has now increased to 57%. This comprises 13.4% held directly by its subsidiary and 43.6% held indirectly through Anchorage Infrastructure Investments Holdings Limited, another subsidiary of Fairfax India, a statement said.

In addition to this acquisition, Fairfax India had previously announced its intention to acquire an additional 7% equity interest in BIAL from SFS for an additional consideration of $175 million. The completion of this transaction is subject to certain performance conditions being met by BIAL and other closing conditions. These conditions are expected to be assessed after October 31, 2023, it said.

BIAL is the operator of Kempegowda International Airport Bengaluru (KIAB), which is the third busiest airport in the country.

Under a concession agreement with the Government of India, BIAL has been granted exclusive rights until 2068 to develop, design, finance, construct, commission, maintain, operate, and manage the KIAB through a public-private partnership.

Also read: Fairfax fully committed to Bengaluru airport investment, says BIAL CEO Hari Marar