"BAA considers Australian airports sell-off"

Saturday, October 21, 2006

BAA considers Aussie  sell-off
Australia - NEWS.com.au


THE world's largest airport operator, BAA, is considering selling its stake
in a number of Australian airports.

German construction group Hochtief overnight announced that it was leading a
consortium buying a majority stake in Hungary's Budapest airport from BAA
Plc, which has been taken over by Spain's Ferrovial. 

That announcement was accompanied by confirmation that BAA was considering
selling its other international airport interests, which include minority
stakes in the Melbourne, Perth, Darwin, Launceston, Alice Springs and
Tennant Creek airports. 

Melbourne and Launceston airports operator Australia Pacific Airports
Corporation (APAC) today said it would be "business as usual" despite BAA's
decision to sell its 20 per cent stake in APAC. 

APAC chief executive Chris Barlow said BAA's decision was not a surprise and
both Melbourne and Launceston airports would continue to operate with a
"business as usual" approach. 

"The remaining shareholders will determine APAC's future ownership
structure," Mr Barlow said, adding that the shareholders' agreement
contained pre-emptive rights. 

"I can assure you all that APAC will remain in good shape, continuing to be
a majority Australian-owned company and continuing to serve the interests of
Melbourne and Victoria." 

In addition to BAA, APAC's other shareholders are AMP with 41 per cent, REEF
Infrastructure (26 per cent) and Hastings Funds Management (13 per cent). 

In response to the Hochtief deal over the Ferihegy airport, Budapest Airport
said BAA's strategy had changed since the Ferrovial takeover in June to
focus on its United Kingdom airports, rather than on its international
businesses. 

"BAA is therefore considering selling its stake in Ferihegy and other
international airport interests, as part of a broader asset disposal
strategy," Budapest Airport said. 

The deal means that control of the airport is being sold to a group led by
Hochtief less than a year after the German company lost out in the bidding
for the airport to BAA. 

Hochtief also has an international airport fund with Australian
Infrastructure Fund, Hochtief AirPort Capital, which has a stake in Sydney
Airport as well as other airport holdings. 

Hochtief is also the majority shareholder of Australian construction company
Leighton Holdings.

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