London City Airport investor may be seeking an exit
its 25 percent stake in London City Airport, two people familiar with the matter
said, a sale that could fetch up to 200 million pounds ($317 million).
airport from Global Infrastructure Partners (GIP) in 2008, is now looking for
an exit and has approached infrastructure and pension funds, the sources said.
capacity and improve profits, but Highstar may be focussed on the growth prospects
of the airport moving forward, the sources added.
50 million pounds and delivered it substantially, but it is set to perform slightly
below the bankers’ base case this year for the first time,” one of the sources
its number of passengers — most of them business travellers commuting to and
from London’s buzzing financial district — drop 14 percent to 2.8 million.
times, seen by market sources as a benchmark for the airport’s enterprise value,
Highstar could fetch between 150 and 200 million pounds for its stake.
pre-emption based on the terms of their agreement, the two sources close to the
did not immediately respond to a request for comment. A GIP spokesman declined
International Group (AIG.N), the stricken U.S. insurer.
together with GIP. The deal’s value was 742 million pounds, according to Thomson
stake to GIP for an undisclosed sum. AIG has cosponsored infrastructure funds
together with Highstar, though the latter is an independent asset manager.
In July 2009, local authorities approved a planning application that would raise
the number of permitted flights at the airport from 80,000 to 120,000 per year.
to take place next month, the airport spokeswoman said on Wednesday.
investors into its airports. It has lured South Korea’s National Pension Service,
Abu Dhabi Investment Authority (ADIA) and U.S. pension fund Calpers with minority
stakes into its majority-owned Gatwick Airport.
reinstated an order for BAA, owned by Spain’s Ferrovial (FER.MC), to sell London’s Stansted airport and either Edinburgh or Glasgow airports
in Scotland within two years.