From Bolton Council website..
Manchester Airport Plc (MAPLC) sought the approval of shareholders at an Extraordinary General Meeting on the 16 April 2012 for the disposal of shares in Humberside International Airport Limited.
Given the urgency of this matter under rule 16 of Part IV of the Council’s Constitution, an urgent decision was required for the Council’s minority shareholders vote to agree to the disposal, as set out above.
A strategic review carried out by Manchester Airport Group identified Humberside would not form part of the longer term asset base for the Airport. MAG has identified that:
1. Humberside International Airport Limited is forecast to generate earnings before interest, taxes, depreciation and amortisation (EBITDA) of £0.1M and make an earnings before interest and taxes (EBIT) loss of £0.4M for the year ending 31 March 2012.
2. Humberside International Airport Limited has a defined Benefit Pension Scheme with an estimated £6.6M deficit as at September 2011 (valued on a cessation basis).
3. Humberside International Airport Limited has a short term cash funding requirement of £3M over the next 3 years.
4. The Airport makes up a disproportionate amount of Senior Management Time relative to its size in MAG.
5. Humberside International Airport Limited is considered non-core to MAPLC’s strategy.
Manchester Airport Plc has received an offer to sell its 82.7% shareholding in Humberside International Airport Limited for circa £2.3M. The Airport has confirmed that this offer commercially
represents best value for its shares and fits in with the longer term strategic review of MAPLC.
The proposal to sell Humberside International Airport Limited is classed as a “reserved matter” under the Articles of Association and therefore, needs the agreement of the shareholders by ordinary resolution.
Clearly the RL rumour has substance, could we see the airport become another business airport like Oxford?