09/11/2007 - 15:40

Infrastructure fund lifts stake in Perth airport

09/11/2007 - 15:40

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Australian Infrastructure Fund has lifted its stake in Perth Airport to at least 29.3 per cent after the fund's parent body, Hastings Funds Management Ltd, acquired BAA International Holdings for $775 million.

Australian Infrastructure Fund has lifted its stake in Perth Airport to at least 29.3 per cent after the fund's parent body, Hastings Funds Management Ltd, acquired BAA International Holdings for $775 million.

Following the acquisition, all of Perth Airport's existing shareholders will be offered the opportunity to acquire their pro-rata share of the stakes being sold by BAA, which equates to a 1.5 per cent holding worth around $16.3 million.

If existing shareholders take up this opportunity, AIF would pay $48.5 million to lift its holding from 24.9 per cent to 29.3 per cent of the airport.

BAA plc, formerly the British Airport Authority, was purchased in June last year by a consortium led by Spanish transport andinfrastructure conglomerate Ferrovial, in partnership with Canadian and Singaporean investors.

The company had announced it would sell all of its international holdings, including stakes in Melbourne, Launceston and Darwin airports, to focus on British airports last year.

 

 

The full text of a company announcement is pasted below

Hastings Funds Management Limited (Hastings), on behalf of its managed funds, is pleased to announce the
acquisition today of BAA International Holdings from BAA Limited for A$775 million.

BAA International Holdings owns BAA's interests in Australian airports, being a 19.8 percent interest in APAC
(which holds Melbourne and Launceston Airports), 15 percent interest in Perth Airport, 15 percent interest in the
convertible notes on issue at Perth Airport, and 10 percent interest in the Northern Territory Airports (which holds
Darwin, Alice Springs and Tennant Creek airports).

The acquisition has been made by a company which is owned by three funds managed by Hastings - AIX, the
unlisted Utilities Trust of Australia and The Infrastructure Fund. The Hastings managed funds will initially invest
approximately A$285 million.

It is important to note that following the acquisition, all existing shareholders in APAC, Perth Airport and
Northern Territory Airports will be offered the opportunity to acquire their pro-rata share of the stakes being sold
by BAA.

AIX has initially invested $146.3 million in the acquisition (including transaction costs). Following any sell-down
to minority shareholders in Perth Airport and Northern Territory Airports of their pro-rata stakes, the minimum
investment for AIX will be $125.9 million (including transaction costs) for additional stakes of 2.0 percent in
APAC, 4.4 percent in Perth Airport, 2.8 percent in Northern Territory Airports as well as 15.0 percent of the Perth
Airport convertible notes.

Chief Operating Officer, Peter McGregor said, "We are delighted to have the opportunity to increase our stakes
in APAC, Perth Airport and Northern Territory Airports. These businesses have been key contributors to the
growth of AIX over many years, and we believe we have acquired the additional stakes on attractive terms.

Given the positive outlook for aeronautical growth in Australia and the significant development pipelines in each
of these businesses, we see this acquisition as an important step in continuing to grow AIX and deliver value to
securityholders."

AIX will initially fund the acquisition through the drawdown of existing senior debt facilities and available cash
reserves. In respect of the refinancing of this debt and subject to market conditions, AIX does not anticipate
issuing additional stapled securities. A further announcement about the refinancing is expected to be made in
the near term.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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