Canadian billionaire Prem Watsa’s Fairfax India has announced plans to acquire an additional 10% stake in Bangalore International Airport Ltd. (BIAL) from Siemens Project Ventures. The transaction, valued at $255 million, will increase Fairfax’s ownership in the airport venture to 74%, reinforcing its position as the majority stakeholder.
Once the deal concludes, Fairfax India’s wholly-owned subsidiary will hold a 30.4% stake in BIAL, while 43.6% will be owned by Anchorage Infrastructure Investments Holdings, its flagship investment vehicle for airports and infrastructure. The stakes held by Airports Authority of India (AAI) and Karnataka State Industrial and Infrastructure Development Corporation (KSIIDC) remain unchanged at 13% each. “This additional investment in BIAL underscores our confidence in its growth potential and the exceptional leadership of Hari Marar and his team,” said Prem Watsa, Chairman of Fairfax India. The transaction is expected to close in the first quarter of 2024, subject to shareholder approval at a special meeting in January. The $255 million purchase price will be paid in three instalments: upon deal completion in early 2024, followed by payments in August 2025 and July 2026.
Fairfax India has steadily increased its stake in BIAL over the years. Last year, the company acquired a 7% stake for $175 million, bringing its total shareholding to 64%. BIAL operates Bengaluru’s Kempegowda International Airport under a concession agreement with the government, granting it exclusive rights to manage the airport until 2068. The airport, a key hub in India’s aviation sector, generated $305 million in revenue last year. Fairfax India’s investment reflects its long-term confidence in India’s infrastructure sector. In June 2019, the firm launched Anchorage Infrastructure Investments Holdings to focus on airport and infrastructure investments across the country. This move is expected to further strengthen BIAL’s operational capabilities and support its continued growth, bolstered by robust passenger and cargo traffic. As one of India’s busiest airports, Kempegowda International Airport plays a critical role in the nation’s aviation and economic landscape, making it an attractive asset for Fairfax’s expanding portfolio.
