A consortium led by Ontario Teachers’ Type of pension Board and Borealis Infrastructure won antique dealer war to purchase London City Airport for about 2 billion pounds (US$2.8 billion), based on people familiar with the problem.
The group beat an adversary bid from China’s HNA Group to acquire the facility from Global Infrastructure Partners, the individual said, asking not to be recognized as the offer isn’t public. Cheung Kong Infrastructure Holdings Ltd. had been thinking about bidding, people familiar with the matter said Wednesday.
Representatives for GIP and Teachers’ declined to comment, while a representative for Borealis didn’t respond to a request for comment. An official for HNA Group couldn’t be reached for comment outside of regular business hours.
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The winning bid was reported earlier through the Financial Times.
The airport, located about 6 miles (10 kilometres) from London’s financial district and opened in 1987, was acquired by American International Group Inc. and GIP in 2006. At the time, news reports said the companies agreed to pay 750 million pounds ($1.04 billion), though terms weren’t disclosed. 2 yrs later, American International sold its stake to GIP and Highstar Capital, which now owns 25 %.
The Canadian-led group will need to be prepared for a political conflict that stands when it comes to an organized expansion that would help City serve 6.5 million passengers annually by 2023. London Mayor Boris Johnson vetoed a 250 million-pound plan to add aircraft stands, an arrivals terminal and taxiway last year.
London City Airport handled an archive 4.32 million passengers in 2015, 18 percent at least a year earlier, despite how big aircraft limited by its short runway and noise- curtailment rules requiring steep takeoffs and landings. London Heathrow, Europe’s busiest airport, moved 75 million travelers.
Bloomberg.com
