Edinburgh Airport sale attracts interest of JP Morgan
Date added: 15 January, 2012
JP MORGAN, the US financial institution, is believed to be the latest to express an interest in bidding for Edinburgh airport. The bank is believed to be sounding out interested parties ahead of the deadline for offers in March. Potential bidders will submit bids in excess of £400 million. A preferred bidder will be selected by the summer. The growing list of those interested in buying Edinburgh 3i and the US-based Carlyle Group (included Sir Brian Souter) and GIP. Arcus European Infrastructure Fund may also table an offer. Also a consortium of Scottish businessmen. A price of £400 – 600 million is likely.
Sir Brian Souter is believed to be supporting a bid from Carlyle Group
Saturday 14 January 2012 (Scotsman)
JP MORGAN, the US financial institution, is believed to be the latest to express an interest in bidding for Edinburgh airport. Sources have told Scotland on Sunday that a delegation from the asset management arm’s infrastructure fund will be in the city tomorrow to meet potential backers and supporters.
A bank spokeswoman said she could not confirm the speculation “either way”. But the bank is believed to be sounding out interested parties ahead of the deadline for offers.
Potential bidders will submit bids in excess of £400 million by March. A preferred bidder will be selected by the summer.
Citi, BNP Paribas and Ernst & Young are advising BAA on the sale and a prospectus has been issued to interested parties.
The growing list includes private equity firms 3i and the US-based Carlyle Group, the latter supported by a group of Scottish businessmen including the merchant banker Sir Angus Grossart and almost certainly the transport tycoon Sir Brian Souter.
Global Infrastructure Partners is also expected to bid and has hired Royal Bank of Scotland as its adviser. Sources believe Arcus European Infrastructure Fund, which bought Forth Ports, may also table an offer.
Another bid may come from a consortium of Scottish businessmen led by investment banker Ben Thomson and former Edinburgh airport managing director Richard Jeffrey. Thomson has said that he has gathered support from financial groups to launch an offer.
Edinburgh airport was put up for sale in October under orders from the Competition Commission, but the choice surprised those who had expected BAA to offer Glasgow for sale.
The commonly held view was that BAA, owned by Spanish infrastructure firm Ferrovial, would get a better price for Edinburgh.
Early estimates that it may raise between £700m and £1 billion were based on the £1.5bn it achieved in the sale of Gatwick, but industry analysts say a £400m to £600m price tag is more likely.
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STAGECOACH boss Brian Souter has hinted that he may become involved in the bid battle for Edinburgh airport.
ARCUS European Infrastructure Fund and Global Infrastructure Partners (GIP) are understood to be formulating offers for Edinburgh airport.
GLOBAL Infrastructure Partners has given its strongest indication yet that it intends to bid for Edinburgh airport after hiring Royal Bank of Scotland as adviser.
THE sales prospectus for Edinburgh airport will be released “imminently”, The Scotsman has learned, kick-starting what is expected to be a fierce bidding war.
http://www.scotsman.com/business/transport/edinburgh_airport_sale_attracts_interest_of_jp_morgan_1_2057859
See older news about the Edinburgh sale below:
Souter in bid to buy Edinburgh airport
November 21, 2011 Sir Brian Souter, the founder of Stagecoach, is considering joining a consortium of Scottish investors to buy Edinburgh airport. The Scottish millionaire is thought to be drawing up plans after BAA appointed investment banks Citigroup and BNP Paribas to help sell the airport. The entrepreneur will not make any formal decisions until the sales document is sent out in January. Other parties interested in buying it are 3i; Aeroports de Paris, which owns Charles de Gaulle airport; and GIP. Click here to view full story…
BAA opts to sell Edinburgh airport for £500m and keep Glasgow
October 20, 2011 BAA is putting Edinburgh Airport up for sale with an estimated price tag of about £500m. They chose Edinburgh instead of Glasgow, as it would fetch a higher price, is performing better and would be easier to sell. Bidders include GIP (owns Gatwick), Manchester Airports Group, Borealis Infrastructure, and Macquarie. BAA is now starting sale preparations and expects to formally approach the market in the New Year in order to agreeing a sale by Summer 2012. Click here to view full story…
BAA ordered to sell Glasgow or Edinburgh airport before selling Stansted
October 8, 2011 BAA has been told by the Competition Commission that it must sell either Edinburgh or Glasgow before it sells Stansted. Earlier this year it had said BAA should sell Stansted first, but BAA appealed which has caused delay. So now the sale of one of the Scottish airports must be brought forward, and will begin soon, as it will take longer for Stansted to be sorted out. BAA says it is now clearer than ever “that Heathrow & Stansted serve different markets.” Click here to view full story…
Posted: Sunday, January 15th, 2012. Filed in News about Airports, Recent News.