Gatwick Sold Cheap
BAA confirmed it would sell London’s Gatwick Airport for £1.51 billion to Global Infrastructure Partners (GIP). BAA earlier hoped to receive at least £1.8 billion and was reluctant to go below £1.6 billion. Ferrovial, a Spanish infrastructure company and BAA’s parent company, stated that it would lose €142 million on the disposal of Gatwick. GIP offered to pay an extra £55 million on the condition that the airport’s traffic performance and its future capital structure improve.
BAA was reported to be deep in debt and to need the sale to maintain its solvency. The decision was aided by the UK Competition Commission’s ruling for BAA to sell the asset due to antitrust concerns.
(Source: www.business.timesonline.co.uk)