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

 

Testing And Decontamination: New Standard On Meth Residue

Standards New Zealand has today released NZS 8510:2017 Testing and decontamination of methamphetamine-contaminated properties ... More>>

ALSO:

Mince, Etc: US Food Poisoning Lawyer At Conference

As New Zealand chefs, food experts, and MPI debate what constitutes a cooked beef burger, leading US food safety litigator Bill Marler, who made his name prosecuting the burger company responsible for a major E. coli outbreak, is keynote speaker at the Food Integrity Conference. More>>

ALSO:

Petya: New Ransomware Campaign Hits Worldwide

A new ransomware campaign known as Petya is affecting computer networks using Microsoft Windows. It was first seen affecting systems in the Ukraine, but is quickly spreading across other computer networks in Europe. More>>

ALSO:

Skodafone Goneski: Sky TV, Vodafone Drop $3.44 Billion Merger Plan

Sky Network Television and Vodafone New Zealand have terminated their merger agreement which aimed to create the country's largest telecommunications and media group, and have withdrawn an appeal against the Commerce Commission's rejection of the plan. More>>

Quake Insurance: Reforms To EQC Act Announced

· Increasing the monetary cap from $100,000 (plus GST) to $150,000 (plus GST) for EQC building cover.
· Clarifying EQC land cover is for natural disaster damage that directly affects the insured residence or access to it... More>>

ALSO: