UK’s BAA announced (23-Apr-2012) it has agreed to sell its 100% interest in Edinburgh Airport Limited to Global Infrastructure Partners (GIP) for a cash consideration of GBP807.2 million, with the sale approved by the UK Competition Commission. The sale price is payable in full at closing. The sale is expected to close by the end of May-2012. GIP chairman and MD Adebayo Ogunlesi commented: “Edinburgh Airport is a high quality infrastructure asset. Its acquisition is a landmark deal for GIP and represents the first investment by GIP II. We see significant opportunity to apply our tested and successful operational expertise and our knowledge of the global airports sector to develop and enhance the performance of Edinburgh Airport in years to come.” GIP’s financial adviser in this transaction was RBS. Slaughter and May were GIP’s legal advisers. GIP, which acquired London Gatwick for BAA in Dec-2009 for GBP1.5 billion and also owns London City Airport, has been vying with a consortium led by JP Morgan’s infrastructure fund to acquire the asset. The price, at in excess of GBP800 million and a little more than half what GIP paid for London Gatwick Airport in 2009, is high at over 16 times earnings, recent transactions having been more in the order of 12-13 times. This reflects Edinburgh's growth profile, balanced traffic mix and expansion potential. The price is, however, well below the 30 times earnings level reached in the pre-recession mid-2000s. The sale will also offer some comfort to Infratil, which wants to sell Glasgow Prestwick Airport, despite the profile differences of the two airports. [more - original PR - Global Infrastructure Partners] [more - original PR - London Gatwick] [more - original PR - BAA] [more - original PR - UK Competition Commission]
BAA announces sale of Edinburgh Airport to Global Infrastructure Partners
You may also be interested in the following articles...
Global airport construction review 1Q2017 – focus on Latin America and Africa
The annual airport construction overview report for 2017 focuses on Latin America and Africa, two regions that are often overlooked but which make their contribution to the global total of activity. One of them, Africa, is surprisingly strong in new airport construction, as long as the funding can be found, which is no easy task.
The total known global investment on airport projects continues to grow, and hovers close to the USD1 trillion mark; and with Asia Pacific the overall leader.
There are, however, anomalies, with some regions witnessing many projects but small investment figures, and vice versa. This report attempts to explain those anomalies while offering a breakdown of the biggest projects in each region.
Brexit and aviation: still no clarity, even as UK government sets timeframe and broad principles
Over seven months after the UK voted in a referendum to leave the European Union, the longer term impact on aviation remains uncertain. The UK Prime Minister Theresa May will almost certainly gain parliamentary authority to trigger Article 50 by her planned deadline of the end of Mar-2017, taking the UK out of the EU by Mar-2019.
On 17-Jan-2017 Mrs May set out 12 principles which will guide the UK in its negotiations with the European Union over the terms of its exit. These principles formed the basis of a White Paper outlining the government's planned approach to the Brexit negotiations. Among other things, the UK does not plan continued membership of the EU Single Market and wishes to control immigration.
There is now a clear timeframe for the Brexit negotiations and a broad framework to guide the UK government in these talks, but still no clarity for aviation. There are obstacles to the UK's continued membership of the European Common Aviation Area, and a bilateral approach may now be more likely. The UK Transport Secretary wants the "best possible access to European aviation markets", but is not yet able to say how that can be achieved.