Completion of divestment for 5% Stake in Bangalore International Airport Ltd. for USD 48.9 million
As communicated on April 18, 2016, Zurich Airport has reached an agreement to sell its 5% minority shareholding in Bangalore International Airport Limited (“BIAL”) in India to a subsidiary of Fairfax India Holdings Corporation for USD 48.9 million. With the final settlement, the transaction has now been completed. The disposal of BIAL results in a capital gain of approximately CHF 30-35 million.
BIAL owns and operates the Kempegowda International Airport Bengaluru (“KIAB”) under a 30 year concession agreement (with a further 30 year extension option) from the Government of India. KIAB has the distinction of being the first greenfield airport in India built by the private sector under a public-private partnership to the highest international standards.
Zurich Airport pioneered the airport privatization process in India and was selected in 2001 as the operator shareholder for this greenfield airport. Since the start of construction in 2005, Zurich Airport successfully transferred its operational expertise to BIAL through an Operations-, Management- & Services Agreement (“OMSA”) which transformed KIAB into Indian’s 3rd largest and one of the fastest growing airports. Through this value contribution and with the conclusion of the OMSA contract in 2015, Zurich Airport’s role has been gradually reduced to a minority shareholder leading to the decision to monetize the remaining 5% stake in BIAL. In 2009, Zurich Airport sold 12% of its shareholding in BIAL to GVK Power & Infrastructure Ltd.
Zurich Airport remains committed to the Indian aviation market and will actively consider new investment opportunities where our local experience and recognized international airport operator expertise can generate a significant impact. India remains one of Zurich Airport’s selected strategic investment markets.