Zurich Airport divests 12% in Bangalore and keeps 5% in preparation for further growth in India
05-Oct-2009 After the successful opening of the new Bangalore International Airport and meeting high international service standards, Zurich Airport prepares the ground for the next expansion in Bangalore.
Zurich Airport intends to divest 12% of its venture in Bangalore to either an existing shareholder or a new strategic partner for the project in order to forge a strong development partnership for the next expansion. Zurich Airport is strongly committed to the Indian aviation market, will remain the operator of the airport and keep 5% in the equity including board representation. Zurich Airport intends to further grow in terms of operational management contracts in India with new projects.
Zurich Airport has pioneered the privatisation process in India since it has been selected in 2001 as operator and co-investor for a new greenfield airport in Bangalore, India. In May 2008, the airport successfully started operations and has since reached the highest international quality standards.
Bangalore International Airport Ltd. (BIAL) is currently planning the next expansion of the airport, which includes an additional terminal and a second runway. In this regard, Zurich Airport intends to divest 12% of its total shareholding of 17% to either an existing shareholder or a new strategic partner for the project with the aim to forge a strong development partnership for the next expansion. Zurich Airport has formally launched the Right of First Refusal Process with a valuation expectation for 12% in BIAL shares of approximately CHF 100 Mio. before taxes. The divestment process is expected to take 4 months.
Zurich Airport shows continuous commitment to the Bangalore venture as well as the Indian aviation market in general by keeping the operational responsibility in BIAL and by also keeping a minority stake of 5%. Based on the valuable experience of the past Zurich Airport is willing to further invest in project opportunities in the Indian Subcontinent together in a strong partnership and thus is committed to the modernisation of the Indian Airport infrastructure by bringing the expertise of an international airport operator.