BAA agrees to sell London Gatwick
BAA agree to sell Gatwick airport to Global Infrastructure Partners
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By Lewis Bazley. |  |
Wednesday, 21, Oct 2009 09:05
By Sarah Garrod
BAA has today announced it has agreed to sell the world's busiest single runway airport for £1.51 billion.
The sale was agreed for a 100 per cent interest in Gatwick Airport Limited to an entity controlled by Global Infrastructure Partners (GIP), who already own London's City airport.
Proceeds from the sale will be used to primarily repay part of BAA's existing debt.
BAA had already agreed to sell Gatwick prior to a ruling by the Competition Commission that the company must sell the airport, along with Stansted and either Glasgow or Edinburgh. The commission ruled that BAA's ownership of the airports was causing a lack of competition which was affecting service for passengers.
In a statement today, BAA said £55million of the sale price is conditional on future traffic performance and the buyer's future capital structure. The sale is subject to, among other things, EU merger regulation clearance. Completion of the sale is scheduled for December.
Colin Matthews, BAA's chief executive, said: "Gatwick and its people have long been a central part of BAA and we are proud of the airport's development as one of the world's leading international airports.
"BAA is changing and today's announcement marks a new beginning for both Gatwick and BAA. We wish Gatwick well for the future and are confident that the airport will flourish under new ownership.
"BAA will focus on improving Heathrow and our other airports."
Gatwick Airport Limited employs around 2,500 people and is the UK's second busiest airport.