Zurich Airport has reached an agreement to sell its 5% minority shareholding in Bangalore International Airport Limited (BIAL), the operator of Kempegowda International Airport in Bengaluru, India, for approximately US$50m.
The transaction is subject to customary closing conditions and is scheduled for completion by Q3 2016. BIAL currently owns and operates Kempegowda Airport under a 30-year concession from the Indian government.
Zurich Airport was one of the first foreign operators to be involved in the privatization of airports in India and was selected in 2001 as a shareholder for the airport. Since the start of construction in 2005, Zurich Airport successfully transferred its operational expertise to BIAL through an operations, management and services agreement (OMSA) that helped transform Kempegowda into one of India’s fastest growing airports. In 2015, Skytrax named Kempegowda as the ‘Best Regional Airport in Central Asia’.
In recent years, Zurich Airport’s role has been gradually reduced to a minority shareholder leading to the decision to monetize the remaining 5% stake in BIAL. Zurich Airport previously sold 12% of its shareholding in BIAL to GVK Power and Infrastructure in 2009.