Fairfax India Shareholders Approve One-Time Deviation From Investment Concentration Restriction

Fairfax India Holdings Corporation (TSX: FIH.U) has announced that its shareholders have overwhelmingly approved a one-time deviation from the company's investment concentration restriction. The special resolution, which required the approval of holders of multiple voting shares and subordinate voting shares, each voting separately as a class, was approved by 100% of the votes cast by holders of multiple voting shares and approximately 99% of the votes cast by holders of subordinate voting shares.

The proposed deviation from the investment concentration restriction is intended to allow Fairfax India to complete the previously announced acquisition of an additional 10% equity interest in Bangalore International Airport Limited (BIAL). The acquisition, which is subject to receipt of applicable third-party consents and other customary closing conditions, is expected to close in Q1 2025.

The acquisition of an additional 10% equity interest in BIAL aligns with Fairfax India's long-term growth strategy and its commitment to investing in high-quality businesses with strong management teams and robust business models. BIAL, which operates the Kempegowda International Airport in Bangalore, has demonstrated strong growth and has received notable recognition, including being named one of the "World's most beautiful airports" and receiving the "World special prize for an interior 2023" at the 2023 Prix Versailles by UNESCO.

The acquisition of an additional 10% equity interest in BIAL also aligns with Fairfax India's commitment to stability, predictability, and consistent growth in investments. By simplifying its corporate structure and reducing complexity, Fairfax India can enhance operational efficiency and focus on its core competencies, potentially leading to improved financial performance and increased shareholder value.

In conclusion, the approval of the one-time deviation from the investment concentration restriction by Fairfax India shareholders is a positive development for the company and its long-term growth strategy. The acquisition of an additional 10% equity interest in BIAL is expected to contribute to the company's balanced portfolio of growth and value stocks and enhance its overall performance. As Fairfax India continues to execute its long-term investment strategy, investors should remain optimistic about the company's prospects for future growth and success.