MAG buys Stansted
Colin Matthews (above), Chief Executive of Heathrow, said: "Stansted Airport and its people have been part of our company for a long time. It has been named by passengers as ‘the world’s best airport for low-cost airlines’ for two consecutive years at the Skytrax World Airport Awards, and we are proud of its achievements. We wish the new owners every success and are confident the airport will continue to flourish. We will continue to focus on improving Heathrow, Glasgow, Aberdeen and Southampton airports".
As part of the transaction, Industry Funds Management (IFM) will become an investor in MAG investing significant new equity and taking a 35.5% interest in the enlarged group, after having worked in close partnership with MAG through the acquisition process of Stansted Airport. J.P. Morgan Cazenove acted as financial adviser and RBS as debt adviser to MAG. Gleacher Shacklock LLP acted as financial adviser to IFM.
MAG has a detailed integration plan in place to ensure a seamless transition of ownership and operations at Stansted which will maintain business as usual for passengers and customers. The combined group that this acquisition creates will generate significant benefits for all stakeholders.
MAG has a proven track record in successful airport management as the owner and operator of Manchester, East Midlands and Bournemouth airports. In the 12 months ending 31 March 2012, MAG’s passenger numbers rose by 6.7%, revenues increased by 8.6% and underlying operating profit was up by 26%.
IFM has investments in nine airports across Australia, including five major state capital city airports. In the UK, IFM already has significant investments in Anglian Water, the fourth largest water and sewerage company in England and Wales, and Arqiva Limited, the UK’s largest broadcast and wireless communications infrastructure company.
Sir Richard Leese, Leader of Manchester City Council, MAG’s current majority shareholder said: "MAG is a key driver of jobs and growth in the North of England and the acquisition of Stansted will help us deliver maximum value for Manchester City Council and the other local authority shareholders."
Charlie Cornish, Chief Executive of MAG commented: “We are delighted to be successful in our bid for Stansted Airport, the London airport for Europe. The transaction represents a significant milestone in the achievement of our previously stated strategy of adding a quality airport to the group and delivering long term value to our shareholders.
“MAG has a strong track record of creating shareholder value through strategic investment and enhancing operations to improve customer service and drive increased passenger numbers. We will use that expertise at Stansted to ensure that the airport can fulfil its potential as a high quality alternative London access point for global air travellers. Stansted has scope to benefit from significant volume growth over the short, medium and long term.
“Our bid for Stansted has been under development for well over a year. We have been delighted to work closely with IFM to create a compelling and unique partnership that has been instrumental in providing the capital for this important transaction which sees one of Europe’s largest airport operators now based in Manchester. It marks the start of a new chapter for the Group.”
Above: Stansted Airport, Essex.
Christian Seymour, Head of Infrastructure, Europe, at IFM said: “We are delighted by this announcement which will see IFM become a strategic investor in MAG. It is the culmination of 18 months’ work developing a strong, long term partnership with MAG, and is an important part of our focused strategy of investing in core, high-quality infrastructure assets. IFM is a highly experienced investor in airports, having invested in these assets since 1997.”
Lord Peter Smith, chair of the Association of Greater Manchester Authorities, said: "This represents a good deal for the local authority shareholders which will give Manchester Airport Group a stake in the important South East air traffic market and strengthen MAG by enabling it to capture synergies with airline operations at both Manchester and Stansted, expanding the network of services and encouraging growth.”
Commenting on the news that Manchester Airports Group will be the new owner of Stansted Airport, Hugh Aitken, easyJet UK Commercial Manager said: "We welcome the news that the sale of Stansted Airport has now been agreed. We have long argued in favour of this and look forward to working with Manchester Airports Group as their plans for the future are implemented at Stansted Airport."
