Fairfax India to Increase Stake in Bangalore International Airport with $255M Deal
Deal News | Dec 03, 2024 | Globenewswire
Fairfax India Holdings Corporation has announced an agreement to purchase an additional 10% equity stake in Bangalore International Airport Limited (BIAL) from Siemens Project Ventures GmbH. The acquisition will increase Fairfax India's stake from 64% to 74%, with the transaction expected to complete in Q1 2025 at a total cost of $255 million. The payment is structured in three installments, subject to shareholder and regulatory approvals. This strategic move is part of Fairfax India's continued confidence in the growth potential of BIAL under the leadership of Hari Marar. The partnership with Siemens began in 2017 and reflects Fairfax's long-term investment strategy focused on India.
Sectors
- Private Equity
- Infrastructure
- Aviation
Geography
- India – The primary location of the transaction, as Bangalore International Airport and associated stakeholders are based in India.
- Canada – Fairfax India Holdings Corporation is a Canadian company based in Toronto, which plays a significant role in the transaction.
Industry
- Private Equity – The article details the investment strategy and portfolio expansion of Fairfax India, a private equity firm, focusing on its increased stake in an Indian airport.
- Infrastructure – Bangalore International Airport Limited operates under a public-private partnership, highlighting its strategic importance within the infrastructure sector.
- Aviation – The subject of the investment, Bangalore International Airport Limited, operates an airport, situating it within the aviation industry.
Financials
- $255 million – The purchase price for the additional 10% equity interest in Bangalore International Airport Limited.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Fairfax India Holdings Corporation | Acquiring Company | Company | A Toronto-based investment holding company primarily focused on long-term investments in Indian securities. |
| Bangalore International Airport Limited | Target Company | Company | The operator of Kempegowda International Airport located in Bengaluru, India. |
| Siemens Project Ventures GmbH | Selling Company | Company | A subsidiary of Siemens Financial Services, acting as the vendor in this transaction. |
| Airports Authority of India | Equity Holder | Government | A statutory body under the Ministry of Civil Aviation that holds a stake in Bangalore International Airport. |
| Karnataka State Industrial and Infrastructure Development Corporation Limited | Equity Holder | Government | A government agency involved in infrastructure development in Karnataka, also holding a stake in BIAL. |
| Anchorage Infrastructure Investments Holdings Limited | Equity Holder | Company | A subsidiary of Fairfax India, holding a portion of the equity in BIAL. |
| Prem Watsa | Person of Interest | Person | Founder of Fairfax India, involved in articulating the strategic vision for the investment in BIAL. |
| Hari Marar | Management | Person | Leader of the management team at Bangalore International Airport, credited with operational success. |