Bloomberg News

Edinburgh Airport Auction Said to Be Reduced to Korean, GIP Bids

March 27, 2012

Edinburgh airport, put up for sale by BAA Ltd., has bids from Korea’s Incheon International Airport Corp. and Global Infrastructure Partners Ltd. after other parties dropped out, people with knowledge of the auction said.

Incheon passed a first-round assessment and plans to make an offer in the final stage next month, the state-owned company said in an e-mail. New York-based GIP, which bought London’s Gatwick airport from BAA for 1.51 billion pounds ($2.41 billion) in 2009 and also owns London City, remains in the running, one person said. 3i Infrastructure Plc (3IN) and Carlyle Group exited the auction following the first stage, two other people said.

BAA, owner of Europe’s busiest airport, London Heathrow, said Feb. 22 it had drawn up a shortlist of bids for Edinburgh after antitrust regulators ordered a breakup of its assets.

Passenger numbers at the Scottish terminal, which is worth at least 500 million pounds according to analysts, rose 9.2 percent to a record 9.4 million last year, and BAA predicts the number will reach 12.3 million by the end of the decade.

BAA, a unit of Spanish construction group Ferrovial SA (FER), said it couldn’t comment on specific proposals.

“We’re still working towards final offers being tabled in mid-April,” spokesman Simon Baugh said. BAA, which is being advised by BNP Paribas (BNP) SA and Citigroup Inc. (C:US), said on announcing the sale Oct. 19 that a deal would be wrapped up by the summer.

To contact the reporters on this story: Kyunghee Park in Singapore at kpark3@bloomberg.net; Steve Rothwell in London at srothwell@bloomberg.net

To contact the editors responsible for this story: Neil Denslow at ndenslow@bloomberg.net; Chad Thomas at cthomas16@bloomberg.net


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