Fairfax buys 33 per cent in Bengaluru Airport

Prem Watsa-backed Fairfax has bought a 33 per cent stake in Bangalore International Airport for Rs.2,149 crore from GVK Power and Infrastructure, which is selling assets to pare debt. Canadian billionaire Watsa controls travel operator Thomas Cook and will become the largest shareholder in BIAL, India’s first newly built PPP international airport. GVK will continue to manage the airport, which has had 100 million passengers fly through since opening in 2008. GVK expects to reduce debt by `2,000 crore and save on `300 crore interest payments in a year with the transaction. GVK Airport Developers, a wholly owned subsidiary of GVK Power and Infrastructure that also runs the Mumbai international airport, has Rs..3,500 crore debt and had started the process of paring it last year.GVK will retain 10 per cent after the stake sale to Fairfax India Holdings Corporation and Fairfax Financial Holdings through their subsidiaries in Mauritius.