HOCHTIEF announced yesterday that it has entered into a sale and purchase agreement with a subsidiary of the Public Sector Pension Investment Board,Canada (PSP Investments) for the sale of all shares in HOCHTIEF AirPort GmbH, Essen. The transaction will have retroactive economic effect as of January 1, 2013.

HOCHTIEF AirPort holds participations in the airports of Athens, Budapest, Düsseldorf, Hamburg, Sydney and Tirana. Combined, these airports handle approximately 95 million passengers annually.

The transaction effects a deconsolidation of assets in the value of approximately EUR 1.5 billion. This includes minority interests of some EUR 0.4 billion. The transaction proceeds are approximately EUR 1.1 billion, subject to closing adjustments. HOCHTIEF expects no significant extraordinary earnings impact from the transaction. The transaction is subject to certain conditions precedent, including approval by the competent authorities if required and other required approvals. Closing is expected in the second half of 2013.

"The transaction is the result of a very competitive tendering process. We will use the released funds as planned to reduce debt and to invest in the operating infrastructure business. The transaction will further strengthen HOCHTIEF's financial and competitive position," says Marcelino Fernández Verdes, CEO of HOCHTIEF.

PSP Investments, which is based in Montreal, oversees pensions of the Royal Canadian Mounted Police, the country's military and some federal civil servants. Assets under management as of March 31, 2012, totaled C$64.5 billion ($64.2 billion), including C$3.6 billion in infrastructure.

In Hochtief's failed attempt to sell its six airports last year, bidders including Vinci SA, and China's HNA Group offered more than 1 billion euros for the business, while the German company valued it at as much as 1.6 billion euros, according to sources.