Fairfax India Holdings Corp., led by Canadian billionaire Prem Watsa, has acquired an additional 7% share in Bangalore International Airport Ltd from Siemens Project Ventures GmbH, a division of Siemens Financial Services.
The deal, valued at $175 million, adds to Fairfax’s substantial stake in the airport.
This acquisition follows Fairfax’s previous purchase of a 3% equity stake in the airport from Siemens Financial for $75 million. With this latest transaction, Fairfax’s total ownership in the airport has risen to 64%. This includes a 20.4% stake held by a wholly-owned subsidiary and 43.6% by Anchorage Infrastructure Investments Holdings Ltd, an indirect subsidiary.
In 2022, Fairfax held approximately 54% of BIAL. Siemens Project Ventures GmbH owned a 20% share, and the Airports Authority of India and the Karnataka State Industrial and Infrastructure Development Corporation had a 13% stake each.
Fairfax initially became the major shareholder in BIAL in 2016 by acquiring a 33% stake from GVK Power and Infrastructure for $321 million. It later increased its holding by buying an additional 5% from Zurich Airport. In 2017, GVK divested its remaining 10% stake in the airport to Fairfax as part of its debt reduction strategy.
BIAL, a private entity based in Bengaluru, operates under a long-term concession agreement with the Indian government, which lasts until 2068. The company has been given exclusive rights for development, design, financing, construction, commissioning, maintenance, operation, and management of the Kempegowda International Airport Bengaluru through a public-private partnership model.