Morrison & Co-led group ends Stansted Airport race – report

London's Stansted airport

An investment consortium led by Wellington-based investment bank Morrison & Co has pulled out of the race to buy Stansted Airport in Britain after failing to get bank funding for the deal, a British media report says.

The group's bankers balked at the funding risks, which required bidders having to stump up with 50 percent of the deal in equity and the remainder in expensive investment grade debt, the Daily Telegraph reported, citing unnamed sources.

The airport is the UK's third biggest, deriving about 70 percent of its revenue from budget carrier Ryanair.

Bidders have until January 16 to make an offer, with £1 billion the estimated price tag. Stansted is valued at £1.3 billion, based on regulatory calculations.

The consortium included NZX-listed infrastructure investor Infratil, the New Zealand Superannuation Fund and the newly joined Retail Employees Superannuation Trust from Australia, the paper said.

Their exit leaves Manchester Airports Group and Macquarie in the running to buy the airport.

Madrid-based transportation infrastructure investor Ferrovial bought BAA in 2006 for some £10.3 billion and was forced to put up for sale three of its nine airports by the UK's Competition Commission in 2009.

It has already sold Gatwick and Edinburgh airports and is selling Stansted after giving up its battle when UK Court of Appeal turned down its application in July this year.

That leaves it with Heathrow, Southampton airport in southern England and Glasgow and Aberdeen airports in Scotland.

(BusinessDesk)

This article is tagged with the following keywords. Find out more about My Tags

Comment & Question

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7785 0.0000 0.00%
AUD 0.8853 0.0000 0.00%
EUR 0.6219 0.0000 0.00%
GBP 0.4869 0.0000 0.00%
HKD 6.0413 0.0000 0.00%
JPY 87.4210 0.0000 0.00%

Commods

Commodity Price Change Time
Gold Index 1171.1 -26.030 2014-10-31T00:
Oil Brent 85.9 -0.830 2014-10-31T00:
Oil Nymex 80.5 -0.540 2014-10-31T00:
Silver Index 16.1 -0.314 2014-10-31T00:

Indices

Symbol Open High Last %
NZX 50 5370.2 5405.3 5396.7 -0.16%
NASDAQ 4639.4 4641.5 4566.1 1.41%
DAX 9283.4 9339.3 9114.8 2.33%
DJI 17208.8 17395.5 17195.4 1.13%
FTSE 6463.6 6553.4 6463.6 1.28%
HKSE 23913.7 24046.4 23702.0 1.25%
NI225 15817.1 16533.9 15658.2 4.83%