Stagecoach sells control of Prestwick
Stagecoach Group has sold its controlling stake in Glasgow Prestwick International airport to New Zealand’s Infrastructure and Utilities (Infratil) for £26.1m ( 41.1m).
Infratil, which also owns Wellington International in New Zealand, now holds a 90% stake in Prestwick, with Scottish investment company and airport service provider Omniport taking the other 10% for £2.2m( 3.5m). Omniport has an option to buy a further 10% of the capital, while Infratil will absorb £7.3m ( 11.5m) of Prestwick’s debt.
Kevin O’Connor, chairman of Infratil, said: “From its current base we expect to show sound earnings growth, given both the underlying prospects for further expansion in both passenger and freight volumes and the scope for operating efficiencies.” Prestwick’s freight volumes rose by 10% last year to 52,500 tonnes.
It would have grown by 17% had FedEx and Lufthansa not withdrawn in April 2000.
Infratil said it expected Prestwick to post a £3m ( 4.7m) profit for its current financial year, which runs until the end of April.
Stuart Sinclair, the airport’s head of aviation, said: “We would expect a 5-10% increase in business for the coming year, dependant on attracting new carriers and increasing routes.
We have been talking to Singapore Airlines, EVA, China Airlines, Korean Air Cargo and Asiana.” Prestwick currently receives freighter traffic from Polar, Air France, British Airways, Cargolux, Panalpina and Singapore Airlines.
The acquisition, which was advised by New Zealand-based Morrison & Co,is Infratil’s first offshore investment.
Posted: 26/01/01
