Chennai: Fairfax-owned Bangalore International Airport (BIAL) is expected to see a capacity expansion in with an investment of around $2 billion. This will help the airport handle 65 million passengers a year by 2028, against 20 million passengers at present.
In a letter to shareholders enclosed with Fairfax India's annual report and shared with shareholders recently, Prem Watsa, chairman and chief executive of Fairfax Financial Holding, said: "This (BIAL) is indeed a very exciting investment for Fairfax India."
against 20 million passengers at present.
In a letter to shareholders enclosed with Fairfax India's annual report and shared with shareholders recently, Prem Watsa, chairman and chief executive of Fairfax Financial Holding, said: "This (BIAL) is indeed a very exciting investment for Fairfax India."
A second runway is under development with 2019 as the deadline for completion. A second terminal is scheduled to be completed in 2021, for which the phase 1 schematic design has been completed and detailed planning is ongoing.
"The investment required to complete the expansion projects is approximately $2 billion and will be funded through internally generated funds and debt. The financing plan, based on a debt to equity ratio of 80:20, and negotiations with banks are well underway," he said.
In March 2017, Fairfax India had acquired 38 per cent of BIAL for $385 million (including 33% from GVK Group, BIAL’s promoter), implying an equity value of above $1 billion for the whole company. Based on BIAL’s March 2017 financial statements, the purchase price valued BIAL at a price-to-earnings ratio of 14.5, the price-to-book value of 4.7 times and price-to-free cash flow of 8.7 times, without considering the value of the real estate that can be monetised.
In July 2017, Fairfax India acquired the final 10 per cent of BIAL-owned by GVK for $200 million.
"The higher price being justified by this purchase enabling Fairfax India and the other remaining shareholders to reconstitute BIAL’s Board, to appoint the best-qualified person as BIAL’s CEO, and generally to allow it to be managed according to Fairfax India’s standards of corporate governance and guiding principles", said the Indo- Canadian businessman.
Watsa said that zero revenue has grown at a CAGR of 22 per cent from 2009 to 2017. This is the revenue earned for providing services such as landing, take-off, parking, ground-handling, ground safety, facilities, amenities and services to airlines and passengers.
04/05/18 TE Narasimhan/Business Standard
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In a letter to shareholders enclosed with Fairfax India's annual report and shared with shareholders recently, Prem Watsa, chairman and chief executive of Fairfax Financial Holding, said: "This (BIAL) is indeed a very exciting investment for Fairfax India."
against 20 million passengers at present.
In a letter to shareholders enclosed with Fairfax India's annual report and shared with shareholders recently, Prem Watsa, chairman and chief executive of Fairfax Financial Holding, said: "This (BIAL) is indeed a very exciting investment for Fairfax India."
A second runway is under development with 2019 as the deadline for completion. A second terminal is scheduled to be completed in 2021, for which the phase 1 schematic design has been completed and detailed planning is ongoing.
"The investment required to complete the expansion projects is approximately $2 billion and will be funded through internally generated funds and debt. The financing plan, based on a debt to equity ratio of 80:20, and negotiations with banks are well underway," he said.
In March 2017, Fairfax India had acquired 38 per cent of BIAL for $385 million (including 33% from GVK Group, BIAL’s promoter), implying an equity value of above $1 billion for the whole company. Based on BIAL’s March 2017 financial statements, the purchase price valued BIAL at a price-to-earnings ratio of 14.5, the price-to-book value of 4.7 times and price-to-free cash flow of 8.7 times, without considering the value of the real estate that can be monetised.
In July 2017, Fairfax India acquired the final 10 per cent of BIAL-owned by GVK for $200 million.
"The higher price being justified by this purchase enabling Fairfax India and the other remaining shareholders to reconstitute BIAL’s Board, to appoint the best-qualified person as BIAL’s CEO, and generally to allow it to be managed according to Fairfax India’s standards of corporate governance and guiding principles", said the Indo- Canadian businessman.
Watsa said that zero revenue has grown at a CAGR of 22 per cent from 2009 to 2017. This is the revenue earned for providing services such as landing, take-off, parking, ground-handling, ground safety, facilities, amenities and services to airlines and passengers.
04/05/18 TE Narasimhan/Business Standard
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