Gatwick sale nets BAA £1.5 billion

Routes and Airports Channel

Gatwick sale nets BAA £1.5 billion

By Cathy Buyck
ATW's Airports Today, November, 2009, p.4

UK airports operator BAA completed an agreement to sell its 100% interest in London Gatwick to a group controlled by Global Infrastructure Partners for £1.51 billion ($2.48 billion), of which £55 million is conditional on future traffic performance and the buyer's future capital structure.

GIP, which was founded jointly by Credit Suisse and GE, owns 75% of London City. "We wish Gatwick well for the future and are confident that the airport will flourish under new ownership," BAA CEO Colin Matthews said, adding, "BAA will focus on improving Heathrow and our other airports."

BAA was ordered by the UK Competition Commission to sell LGW, Stansted and either Glasgow International or Edinburgh but is appealing the ruling. It said it initiated plans to sell Gatwick in September 2008, before the end of the CC's investigation. Proceeds will be used primarily for debt repayment, including $1 billion maturing in March.

LGW opened in 1958 and is the busiest single-runway airport in the world, handling 32.2 million passengers in the year to Sept. 30. The sale is subject to, among other things, EU clearance. Completion of the sale is expected in December.

ATW

Channels

Routes and Airports Channel

Gatwick sale nets BAA £1.5 billion

ATW Media Group

Penton Media