New Delhi: Canadian billionaire Prem Watsa’s Fairfax India Holdings Corp. has further solidified its position in the aviation sector with the acquisition of an additional 7% stake in Bangalore International Airport Ltd. The deal, valued at $175 million, underscores Fairfax’s strategic commitment to India’s bustling aviation landscape.
Siemens Project Ventures Share Transfer: The recent transaction involved the purchase of the 7% share from Siemens Project Ventures GmbH, a division of Siemens Financial Services. This move follows Fairfax’s earlier acquisition of a 3% equity stake from Siemens Financial for $75 million. With this latest development, Fairfax’s total ownership in the Bangalore airport has now surged to an impressive 64%.
Incremental Growth in Ownership: Fairfax India Holdings Corp. has been steadily increasing its footprint in Bangalore International Airport Ltd. Since its initial foray in 2016, acquiring a substantial 33% stake from GVK Power and Infrastructure for $321 million, Fairfax has consistently expanded its presence. Additional purchases, including a 5% increment from Zurich Airport and the recent acquisitions from Siemens Financial, have propelled Fairfax to the forefront of the airport’s ownership structure.
Strategic Ownership Breakdown: Fairfax’s current 64% ownership is structured through a wholly-owned subsidiary (20.4%) and Anchorage Infrastructure Investments Holdings Ltd, an indirect subsidiary (43.6%). This dominant position reinforces Fairfax’s confidence in the airport’s potential and aligns with its long-term investment strategy in India.
BIAL and its Exclusive Concession Agreement: Bangalore International Airport Ltd operates under a concession agreement with the Indian government, extending until 2068. The agreement grants BIAL exclusive rights for the comprehensive development, design, financing, construction, commissioning, maintenance, operation, and management of the Kempegowda International Airport Bengaluru. This public-private partnership model has positioned BIAL as a key player in India’s aviation infrastructure landscape.
Fairfax’s Strategic Moves in Indian Aviation: Fairfax’s journey in Bengaluru’s aviation sector began in 2016, and subsequent strategic acquisitions have solidified its standing. The recent move not only demonstrates confidence in the airport’s growth trajectory but also aligns with Fairfax’s broader vision for contributing to India’s burgeoning aviation industry.
In conclusion, Fairfax India Holdings Corp.’s latest acquisition reaffirms its commitment to India’s aviation growth story, marking another significant chapter in its strategic investment journey within the country.
