"Airport appetite reaches Hungary"

Tuesday, July 12, 2005

Airport appetite reaches Hungary
By Rod Myer
Australia - The Age


Macquarie Airports will find out today whether it is on the Hungarian
Government's list to bid for the Ferihegy airport in Budapest. Eleven
bidders have put themselves forward but four are expected to be cut out
tomorrow.

MAp is among the bidders tipped to survive the Government pruning, along
with Britain's BAA plc, Fraport AG, owner of Frankfurt airport, Hochtief and
Ontario Teacher's Pension Fund.

MAp's partner in Copenhagen Airport, Copenhagen Airports AS, is expected to
be excluded from the bidding.

There is confusion among the bidders about how much of the airport the
Hungarian Government wants to sell. Originally it planned to put 75 per cent
up for sale but bidders now believe that figure might rise to 100 per cent.

Legislation allowing for the sale of the increased stake is believed to have
been drafted but potential bidders are not clear whether it will be passed
before the sale process is completed.

Seventy-five per cent of the airport is expected to be worth $1 billion. A
report by Deutsche Bank expects $30 billion worth of equity in European
airports to be sold over the next five years.

Budapest airport is Hungary's principal international airport, last year
carrying 6.4 million passengers. That figure was up 28 per cent from the
previous year's 5 million passengers.

Budapest airport has growth prospects as Hungary becomes more prosperous.
Hungary, with a population of 10 million, has 0.49 airline passengers per
head of population. Portugal, with the same population, has a passenger per
head of population ratio of 1.97.

MAp shares yesterday closed 3¢ lower at $3.43.


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