MAp Ups Stake in Sydney Airport

MAp Ups Stake in Sydney Airport
NEWS.com.au, Australia

November 12, 2003

MACQUARIE Airports (MAp) has entered into an agreement to acquire an
additional 4.96 per cent of Southern Cross Airport Corporation Holdings
(SCACH), the holding company for Sydney Airport, from Hochtief Airport.

Overnight, MAp obtained commitments to raise $119 million via a placement
of 68.9 million securities at $1.73 per stapled security.

Once this acquisition is finalised, MAp's beneficial interest in Sydney
Airport will increase to 52.99 per cent.

The acquisition from Hochtief Airport is to be completed at a cost of $116
million (the balance to transaction costs and working capital) and
represents a 16 per cent premium to the original SCACH investment in June
2002.

The sale of the stake by Hochtief Airport was anticipated at the time of
acquisition and is in accordance with its original strategy to reduce part
of its investment in SCACH over time.

The stake was sold as part of a competitive tender with the majority of
securities being sold outside of any pre-emptive restrictions on sales by
SCACH shareholders.

"Over the past year (FY02/03) Sydney Airport has delivered strong growth
in earnings before interest, tax, depreciation and amortisation (EBITDA)
of 15.2 per cent," MAp chief executive Kerrie Mather said.

"This was achieved in a difficult operating environment where
international passenger numbers declined by 2 per cent on pcp (the
previous corresponding period)."

Ms Mather said the placement was heavily oversubscribed and there was
strong support from both domestic and foreign institutions.

"This is a vote of confidence in Sydney Airport as an investment and in
MAp and its ability to create value for security holders," Ms Mather said.

The price paid to acquire the stake from Hochtief Airport represents an
eight per cent discount to the current market consensus valuation of MAps
investment in Sydney Airport.

The acquisition of the majority of the SCACH securities will be finalised
on 17 November 2003.


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