The Macquarie Group today announced its plan to sell off the rights to Macquarie Airports (MAp), amid speculation over the possible sale of Sydney Airport and the potential affect on its expansion plans.
MAp is the majority owner of Sydney Airport, which also has stakes in Copenhagen, Brussels and Bristol airports. Market analysts proposed that the group could sell off assets including the Brussels and Copenhagen airports as well as its 74 per cent stake in Sydney airport, after the group suspended trading yesterday ahead of the announcement.
However, the trade of the $4.5 billion flagship airports fund would not affect Sydney’s expansion plans, Sydney Airport confirmed today.
“There’s no change to our capital programme. Our construction programme is proceeding as per normal; it’s not involved in anything else that is happening,” Michael Samaras, media and communications manager for Sydney Airport, said.
MAp has reached a deal with its parent to buy and cancel the management agreement for as much as $300 million.
However, any sale of Sydney airport is unlikely because of cross-ownership caps on Australian airport assets.
Trevor Gerber, chairman of the Independent Board Committee of Macquarie
Airports Management Limited, said, “We have examined a range of options to address the gap between the MAp security price and the value of MAp’s airports and we have progressed a number of initiatives. We are confident that internalising management is an important further step towards reducing that gap and to growing value for all security holders. In particular an internally managed group has the potential to attract a wider range of investors. We have negotiated a transaction with Macquarie that is broadly neutral in terms of earnings per stapled security.”
