Malaysia Airports Holdings forecasts 12% pax growth by end of 2010
Malaysia Airports Holdings Bhd (MAHB) managing director and CEO, Tan Sri Bashir Ahmad, stated passenger traffic at Malaysian international airports is projected to grow by approximately 12% in 2010. He cited the improving regional travel market as the reason behind the higher-than-expected rate of growth.
- Malaysia Airports Holdings Bhd (MAHB) expects a 12% growth in passenger traffic at Malaysian international airports in 2010, driven by the improving regional travel market.
- MAHB has awarded a USD310 million contract for the construction of a new low-cost carrier terminal at Kuala Lumpur International Airport, with plans to issue MYR1 billion of sukuk and USD500 million of conventional bonds to fund the project.
- Ferrovial SA, the BAA investor, has been added to Credit Suisse Group AG's "European Focus List" of favorite shares.
- Abertis Infraestructuras SA's shareholder, La Caixa, may withdraw a proposal for a leveraged buyout by CVC Partners, potentially impacting the company's stock.
- Fraport, the German airport operator, is in talks with a Chinese partner for overseas expansion and is closely monitoring the potential privatization of large airports in Brazil.
- Fraport expects an EBITDA of EUR635 million for 2010, with passenger numbers showing a 7% year-on-year increase in June and July.
Shares in MAHB were flat on Friday.
MAHB this month awarded local construction company UEMC-Bina Puri JV a USD310 million contract for the construction of the new low-cost carrier terminal at Kuala Lumpur International Airport. MAHB is considering issuing MYR1 billion (USD312.5 million) of sukuk and USD500 million of conventional bonds to fund the new LCCT. CIMB Group Holdings Bhd and Citigroup have been hired to manage the sales. The project is expected to be complete by Mar-2012.
See related reported: Tokyo Narita Airport to launch terminal for LCCs; KL Singapore, Gold Coast and Avalon expanding
Ferrovial added to Credit Suisse European Focus List
Elsewhere in Europe, shares in Spain's Ferrovial SA (formerly Grupo Ferrovial) closed 1.8% higher on Friday. The BAA investor was added to Credit Suisse Group AG's "European Focus List" of favourite shares last week. The infrastructure company also manages Cerro Moreno Airport in Antofagasta (Chile).
Abertis shareholder may withdraw plan for equity bid
Also in Spain, Abertis Infraestructuras SA led the way down, dropping 3.7% on Friday. Abertis shareholder, La Caixa, owner of Criteria, reportedly plans to withdraw the proposal to launch a leveraged buyout by Luxembourg-based private equity firm CVC Partners. Criteria, with ACS, which owns 55% of Abertis' stock under La Caixa, planned to sell a large portion of their stake to a three-way investment vehicle with CVC.
Criteria, which holds a 28% of the company's stock, initially stated it would retain a large amount of stock so that the bid does not involve a delisting of Abertis. Abertis owns Cardiff and Belfast International airports.
See CAPA airport operators/investors profile page on Abertis
Fraport seeks Chinese partner, EBITDA outlook of EUR635m for 2010
Germany's Fraport CFO, Matthias Zieschang, stated the company is in talks with a Chinese partner, as part of plans to expand overseas. Mr Zieschang revealed the company is watching Brazil "closely" where large airports are "set to be privatised".
Mr Zieschang added that traffic during summer 2010 has made up for the shortfall in passenger numbers during the ash cloud crisis. He stated passenger numbers have risen 7% year-on-year in Jun-2010 and Jul-2010 and if the trend continues, "this could have an impact on our results". The company expects an EBITDA of EUR635 million for 2010.
Shares in Fraport gained 1.4% on Friday.
Selected airports daily share price movements (% change): 23-Jul-2010
Source: Centre for Asia Pacific Aviation & Yahoo! Finance