Etiqueta: ADP bid

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Multiple bids lined up for Paris airport operator -sources

At least three consortiums have been formed to launch multibillion-euro bids for a stake in the operator of Paris Charles de Gaulle and Orly airports, among the first of France’s planned privatizations for 2019, three financial sources said.

The French state’s 50.6 percent stake in airports group Aeroports de Paris (ADP) is likely to go on the block next year in a deal that could be worth up to 10 billion euros ($11.4 billion), based on the current market capitalisation.

This privatization is part of President Emmanuel Macron’s plan to help to finance a 10 billion euro government fund aimed at supporting innovation projects. For now ADP, energy group Engie and lottery monopoly FDJ are the main companies targeted.

Three consortiums have been forming, people close to the matter said, identifying the lead player in each as U.S.-based fund Global Infrastructure Partners (GIP), French group Vinci and Australian fund IFM.

Milan-listed Atlantia has also been considering taking part in the ADP auction at the helm of a fourth consortium. However, such a plan could be thwarted by this week’s collapse of a motorway brigde in Genoa, which left 38 people dead, bankers and analysts said.

Atlantia may lack the funds if Italy imposes punitive measures against its Autostrade unit, operator of the collapsed bridge, and the group’s management could be too wrapped up in the Genoa aftermath to deal with new distractions.

Reuters reported in June that Vinci, which already holds an 8 percent stake and has made airport operation a core business, had approached pension funds to become partners, given the potential size of the asset.

It is unclear whether any fund has created a joint venture with Vinci.

The companies declined to comment or were not immediately available for comment.

INVESTOR RETURNS

One of the sources said that at least a dozen consortiums will participate in the first round of the auction, adding that each is expected to include one airport specialist or a that already has an airport portfolio.

Global infrastructure investors, Canadian and U.S. pension funds, large European insurers and Middle Eastern funds are also expected to bid, some as part of larger consortiums, the sources said.

European airports have achieved solid investor returns in recent years as they have benefited from increasing global travel and a rise in consumer spending at airport retail outlets, on-site hotels and car parking.

ADP owns its assets outright but the new law envisions the company being given a 70-year concession to operate them, with the state having the right to veto the sale of ADP assets, which are primarily real estate.

Source: New Stage

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Vinci approaches funds to bid for Paris airport operator

Construction company Vinci has approached investors to launch a multi-billion-euro bid for part of French airport group Aeroports de Paris (ADP), the largest of President Macron’s planned state sell-offs, four financial sources said.

The deal, among the first of the planned privatisations, would see France give up its stake of 50.63 percent in the group which runs Charles de Gaulle and Orly airports outside Paris and has a market cap of 19.63 billion euros (17.2 billion pounds).

The French government said this week it would prepare the legal ground to sell stakes in some of its corporate assets, including ADP, energy group Engie  and lottery monopoly FDJ.

Two sources said Vinci, which already owns 8 percent of ADP and has publicly expressed interest in a bigger stake, has approached pension funds to become partners, including Canada Pension Plan Investment Board (CPPIB), Ontario Municipal Employees Retirement System (OMERS) and Ontario Teachers’ Pension Plan (OTPP).

CPPIB and OMERS declined to comment. Vinci and OTPP did not immediately respond to requests for comment.

A third source said he expected the sale to be formally launched in the first quarter of 2019, due to the complexity of the structure.

Given the size of the asset, banking sources have speculated that the government’s stake should be broken up into chunks to be sold off separately or be split into different arms.

One of the sources said he expected U.S. and Middle Eastern funds to be preparing bids, possibly forming consortiums.

European airports have been a lucrative business for private equity firms and pension and infrastructure funds over the past few years because they offer strong growth potential from increasing global travel and services such as shops, on-site hotels and car parking.

Investor Macquarie <MQG.AX> is preparing to sell Brussels airport this summer, sources familiar with the situation said.

In Britain, banking sources expect infrastructure fund Global Infrastructure Partners to sell investments in Edinburgh and Gatwick airports in the coming year or two in what could be a test of investor sentiment on the eve of Britain’s exit from the European Union.

Source: Reuters