"Spain's Abertis Buys UK Airport Firm TBI"

Wednesday, November 24, 2004
 
Spanish firm takes over Luton Airport
By Estelle Shirbon and Michael Smith


MADRID/LONDON (Reuters) - Spanish toll road group Abertis has agreed to buy
airports operator TBI for 551.3 million pounds in cash, giving it ownership
of Luton Airport.

Abertis said on Wednesday its 90 percent-owned Airport Concessions and
Development Ltd was offering 92.5 pence per share for TBI, which owns the
rapidly expanding airport north of London.

Spanish airports agency Aena owns the remaining 10 percent of ACDL.

The offer follows two failed takeover bids for TBI in the last three years
and meets Abertis' strategy to expand into the profitable airline operating
sector.

Luton, a key centre of travel between the two countries, is cashing in on
the rapid growth of low-cost airlines, easyJet and Ryanair.

"In principle the price doesn't seem exorbitant if you take into account
that traffic is growing strongly, and the airports sector is highly
leveraged so if activity increases there's a big margin for improvement,"
Kepler Equities analyst Tomas Pinto said.

TBI shares, which hit three-year highs last week after confirming it had
received a takeover approach, were up 2.2 percent at 91-1/4p at 9:25 a.m..

CRITICAL MASS

TBI said directors and shareholders representing 29.16 percent of its share
capital had agreed to accept the offer which it said represented "full and
fair value".

The deal strengthens Abertis' presence in the profitable airport market.
Airports are benefiting from a surge in air travel due to low fares and are
not impacted by rising fuel prices.

"This acquisition will provide our airport business with critical mass and
is a further step towards our strategy of expanding across the whole range
of infrastructure businesses," Abertis said in a statement.

About 84 percent of Abertis' operating revenues came from toll roads in
2003, 7 percent from carparks, 5 percent telecoms infrastructure and 3
percent for airports. Most of its revenues came from Spanish operations.

It is the second foray by a Spanish company into British airports. Ferrovial
owns stakes in Belfast and Bristol airports and bought train operator Amey
last year.

TBI, which said last month it would take its stake in Luton to 100 percent,
has been the target of two failed approaches since 2001.

French construction firm Vinci dropped a bid for the company in September
2001 following attacks on New York and Washington that rattled the global
travel industry.

German builder Hochtief walked away from a previous bid in January this
year.

TBI was hit by writedowns on underperforming businesses last year but posted
solid first-half profits earlier this month, benefiting from restructuring
and plans by low-cost carriers easyJet and Ryanair to expand at Luton.

TBI owns shares in a further seven airports -- Belfast International,
Cardiff International, Orlando Sandford International in Florida, Stockholm
Skavasta and three Bolivian airports.


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