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.
To Read the News in Full 03/05/18 TE Narasimhan/Business Standard
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.
To Read the News in Full 03/05/18 TE Narasimhan/Business Standard
No comments:
Post a Comment