Malaysia Airports Holdings Berhad confirmed the appointment of UEMC-Bina Puri JV as the main contractor for the construction of Kuala Lumpur International Airport's (KLIA) new permanent LCCT, via a letter of award. The contract is worth USD309 million. The project is expected to take 20 months to complete, with its completion scheduled for Mar-2012. Shares in MAHB remained flat in trade on Friday.
Air New Zealand raises concern over Auckland Airport’s stake acquisition in Queenstown
Elsewhere in the Asia Pacific, shares in Auckland International Airport Ltd (AIAL) dipped 1.0% on Friday. Air New Zealand has written to the Commerce Commission citing concerns over Auckland Airport's recent investment of USD19.5 million for a 25% stake in Queenstown Airport. Queenstown Chamber of Commerce Chairman, Alastair Porter wants the deal withdrawn, saying there are other ways of structuring such a deal, such as a bond issue, that would enable the Queenstown community to retain full ownership of the airport and receive a regular and growing return.
AIAL acquired an initial 24.99% shareholding of the increased capital in Queenstown Airport Corp by subscribing for approximately 4 million new shares at a price of NZD6.91 per share for a total consideration of NZD27.7 million on 08-Jul-2010. AIA has an option to raise its stake to as high as 35% up to 30-Jun-2011. Funds from the sale will allow funding of capital works and strengthen the balance sheet, allowing dividend payments. The two companies will also work together on retail activities, property development and aeronautical operations.
GVK Power and Infrastructure Ltd seeking to expand investment in Bangalore
In South Asia, India’s GVK Power and Infrastructure Ltd (GVKPIL), 29% stakeholder in Bangalore International Airport Ltd (BIAL), announced plans to increase its stake in the company, as shareholders complete their three-year lock-in period within the coming months. BIAL COO, Hari Marar, added GVKPIL is considering plans to acquire Siemens’ 40% stake in BIAL, for which the companies would establish an agreement to purchase the stake at a future date and predetermined price.
Shares in GVKPIL closed 1.3% lower on Friday.
Selected airports daily share price movements (% change): 16-Jul-2010