Infratil sells Manston airport to UK investor for 1
Related M&A Transactions
Infratil, the listed infrastructure fund, has agreed to sell Manston Airport (UK) to Lothian Shelf (710) Limited, an entity wholly owned by Ann Gloag, for cash consideration of £1 plus an adjustment for working capital variances and cash injected by Infratil between 14 October 2013 and transaction completion (which is expected to be around GBP350,000).
Ann Gloag is an experienced investor who co-founded Stagecoach Group, the UK-listed public transport operator, along with her brother, Brian Souter.
Marko Bogoievski, Chief Executive of Infratil, said:
"Infratil Limited is very pleased to have found an acquiror with a vision for Manston Airport's future development. From Infratil's perspective, while Manston was a very small part of the company's overall asset base, this sale will result in a more focused portfolio and improve our future cash flow position."
Ann Gloag said:
"I am delighted to have purchased Manston Airport from Infratil as I believe there is real potential for growth that has not been fully captured. Having worked in the transport industry for over 30 years, I believe I am very well placed to help maximise opportunities for both freight and passengers at Manston."
Following the sale of this asset and the proposed sale of Glasgow Prestwick Airport to the Scottish Government announced last week, Infratil expects to impair these assets by approximately GBP11 million in its half year financial statements to 30 September 2013.
Completion and settlement of the Manston Airport sale will occur on 29 November 2013 (or earlier), and is only conditional on matters within Infratil's control.
According to Infratil's website, Manston Airport had 1,556,655 passengers in 2011. It posted a negative GBP5 million EBITDAF in that year.