Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Morrison & Co-led group gives up on Stansted: report

Morrison & Co-led group gives up on Stansted Airport race over funding risks, report

Jan. 10 (BusinessDesk) - An investment consortium led by Wellington-based investment bank Morrison & Co has pulled out of the race to buy Stansted Airport in the UK after failing to get bank funding for the deal, according to a British media report.

The group's bankers balked at the funding risks, which required bidders having to stump up with 50 percent of the deal in equity and the remainder in expensive investment grade debt, the Daily Telegraph reported, citing unnamed sources. The airport is Britain's third biggest, and derives about 70 percent of its revenue from budget carrier Ryanair.

Bidders have until Jan. 16 to make an offer, with 1 billion pounds the estimated price tag. Stansted is valued at 1.3 billion pounds based on regulatory calculations.

The consortium included NZX-listed infrastructure investor Infratil, the New Zealand Superannuation Fund and the newly joined Retail Employees Superannuation Trust from Australia, the paper said.

Their exit leaves Manchester Airports Group and Macquarie in the running to buy the airport.

Madrid-based transportation infrastructure investor Ferrovial bought BAA in 2006 for some 10.3 billion pounds, and has been forced to three of its nine airports by the UK's Competition Commission in 2009.

It has already sold Gatwick and Edinburgh airports, and is selling Stansted after giving up its battle when UK Court of Appeal turned down its application in July this year. That leaves it with Heathrow, Southampton airport in southern England and Glasgow and Aberdeen airports in Scotland.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news