BIRMINGHAM - 3

[AMM626]

BHX up for sale?

07.12.06
Australian investment bank Macquarie is preparing to sell its stake in Birmingham Airport, in a move that could prompt a full sale of Britain's fifth busiest airport, The Business newspaper reports.
The newspaper says that Macquarie, who recently took full control of Bristol Airport, has offered to sell its 24% holding in Birmingham International to the seven West Midlands councils that together already own 49% of the airport. Under the terms of the shareholding pact, the councils have pre-emptive rights - or first option - to buy Macquarie's stake.
However, 'sources familiar with the situation' have told the newspaper that the move by Macquarie to sell its shares has prompted the councils to consider a sale of their own larger stake, which could lead a buyer to purchase both sets of shares and effectively gain control of the airport.
Irish airports' operator Aer Rianta also owns a 24% stake, while the remaining approximate 3% is held in an employees' share trust. Bankers believe a joint sale by Macquarie and the councils to a single buyer would prompt Aer Rianta to reconsider its position because the firm's influence would be greatly weakened.
Analysts estimate that the current appetite for infrastructure assets could see Birmingham Airport, which posted earnings of £50m in 2004, sell for anywhere between £1bn and £1.8bn. The airport handles about 10m passengers a year making it Britain's fifth busiest. London's City Airport recently sold for £750m - a multiple of more than 35 times earnings.

http://www.uk-airport-news.info/birm...ews-071206.htm