Zurich Airport in Switzerland has completed the sale of its 5% shareholding in Bangalore International Airport Limited (BIAL), the operator of Kempegowda International Airport in India, to a subsidiary of Fairfax India Holdings Corporation for US$48.9m. The deal has resulted in a capital gain of approximately CHF30m-CHF35m (US$30.4m-US$35.5m) for Zurich Airport.
BIAL owns and operates Kempegowda Airport under a 30-year concession agreement (with a further 30 year extension option) from the Government of India. The airport has the distinction of being the first greenfield airport in India built by the private sector under a public-private partnership.
Since the start of construction in 2005, Zurich Airport’s role has been gradually reduced to that of 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 Indian engineering firm GVK Power and Infrastructure.
Zurich Airport has said that it remains committed to the Indian aviation market and will actively consider new investment opportunities where it can make a significant impact.