19 December 2003
Infratil to Move to 100% Shareholding in Glasgow Prestwick International Airport
Infratil advises that it has entered into a conditional purchase agreement with Utilico Investment Trust plc to acquire Utilico’s 5 million shares in Glasgow Prestwick Holdings Limited, the holding company for Glasgow Prestwick International Airport ("Glasgow Prestwick"). The purchase price is £11.7 million.
The purchase is conditional on a number of approval and consents applicable to both Infratil and Utilico. Infratil will require shareholder approval under Listing Rule 9.2, as the purchase is a Material Transaction with a Related Party.
Infratil has also agreed to acquire the options held by Morrison & Co over 1,346,800 of Infratil's shares in GPHL. The purchase price is £0.656, being the difference between the purchase per share payable to Utilico and the current option exercise price.
Subject to satisfaction of all required approvals and consents, Infratil expect to complete the purchase in March 2004. Infratil Chairman, Kevin O'Connor, said:
"Glasgow Prestwick International Airport is an important asset for Infratil. Moving to 100% ownership will enable Infratil to have greater control over strategy and costs, to implement changes to capital structure and to make greater use of the Airport's resources in pursuing other European airport initiatives.Glasgow Prestwick's earnings before interest depreciation and tax (EBITDA) for the 6 months to 30 September 2003 were £3.02 million."
Mr O'Connor also said:
"Due to the related party features of these transactions, the independent directors of Infratil have taken independent valuation advice from Ireland, Wallace & Associates Limited. This advice supported the purchase prices for these transactions. In addition, prior to the proposed shareholders meeting for non-related shareholders to consider approval of these transactions, shareholders will receive an Appraisal Report prepared by an independent expert to be appointed with the approval of the NZX commenting on the proposed purchases as required by the Listing Rules. This is expected to be held in mid-March 2004."
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Infratil is a Wellington, New Zealand based business
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