Fairfax India Holdings Corp, part of Canadian billionaire Prem Watsa’s Fairfax Holdings, has entered into an agreement to sell an 11.5 per cent stake in Anchorage Infrastructure Investments Holdings Limited for about $134 million.
The interest in Anchorage will be sold by way of a private investment agreement, Fairfax said in a statement on Monday.
Anchorage is a subsidiary of Fairfax India and its flagship company for investing in companies, businesses and opportunities in the airport sector in India. It is also Fairfax India’s platform for bidding on airport privatisation projects in India, it said.
Currently, Fairfax India, through its wholly-owned subsidiary, FIH Mauritius Investments Ltd, owns a 54 per cent interest in Bangalore International Airport (BIAL).
As part of the transaction, Fairfax India will restructure its interest in BIAL such that a portion of such interest will be held through Anchorage and, upon closing of the transaction, Fairfax India’s effective ownership interest in BIAL will decrease to approximately 49 per cent on a fully-diluted basis.
The transaction is subject to customary closing conditions, including various third-party consents, and is expected to close in the first half of 2020.
Anchorage Infrastructure is reportedly also among the shortlisted bidders for developing the Jewar international airport.
Fairfax India was founded in 2014 by Watsa and is headquartered in Toronto, Canada. Fairfax has an employee base of about 350,000 in India, and has investments in sectors such as travel, transportation, warehousing, banking and financial services.
Per a September report in The Economic Times, Watsa has proposed to invest another $5 billion in India in the next five years, doubling what he’s put in thus far.