Zurich Airport has reached an agreement to sell its 5% minority shareholding in Bangalore International Airport Limited (BIAL) in India to Fairfax Financial Holdings for US$ 48.9 million before taxes.

The transaction is subject to customary closing conditions and is expected to be completed within the third quarter of 2016.

Fairfax Financial Holdings recently acquired a 33% of the equity of Bangalore International Airport Limited from GVK Power and Infrastructure Limited for US$324 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.

Zurich Airport was selected in 2001 as the operator and 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).

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 already sold 12% of its shareholding in BIAL to GVK Power & Infrastructure Ltd.