INDIA. Zürich Airport plans to sell its remaining 5% minority shareholding in Bangalore International Airport Limited (BIAL) for US$48.9 million before taxes.
The transaction is subject to customary closing conditions and is expected to be completed in the third quarter of 2016.
BIAL owns and operates Kempegowda International Airport Bengaluru under a 30-year concession agreement (with a further 30-year extension option) from the Government of India. It opened in 2008 and was the first greenfield airport in India built by the private sector under a public-private partnership.
Zürich Airport helped pioneer the airport privatisation process in India and was selected in 2001 as operator and shareholder for the new airport. It transferred its expertise to BIAL via an Operations-, Management- & Services Agreement (OMSA), which ended in 2015.
Zürich Airport’s role has been gradually reduced to a minority shareholder leading to the decision to monetise the remaining 5% stake in BIAL. In 2009, Zurich Airport sold 12% of its shareholding in BIAL to GVK Power & Infrastructure Ltd.
In related news, GVK announced last month its plans to sell a 33% stake in BIAL to Fairfax India Holdings Corp. and Fairfax Financial Holdings Ltd to raise money to repay debt. That leaves GVK’s stake in the airport company at 10%.
