Perthnow

 October 21, 2006

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.