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Investment giant looks for Newcastle exit

AUSTRALIAN investment bank Macquarie is reportedly set to sell off its share in Newcastle International Airport as it looks to offload its smaller aviation assets.

The company has started talks to dispose of its 49% holding in Newcastle – thought to have an enterprise value of about £500m ($797m) – which it owns through its controlling stake in Copenhagen international airport.

According to people close to the talks cited in the Financial Times, Macquarie is keen to sell the airport so that the management of Copenhagen can concentrate on running the core business and not be distracted by what it sees as non-core assets.

It is unclear whether a particular buyer has been lined up. However, people close to the discussions emphasised that the talks regarding a sale were at a “very early stage”.

Since taking control of 54% of Copenhagen airport in 2005, Macquarie has disposed of the group’s smaller assets: Hainan in China in 2008 and, more recently, the Asur airport group in Mexico.

The value of demand-driven infrastructure assets, such as airports, toll roads and car parks, has declined during the recession, with falling passenger numbers pushing down landing fees.

South Tyneside Council, which represents the interests of the seven local authorities (LA7) that hold the remaining 51% of Newcastle airport, told the FT that it was not “considering selling any shares at this time”.

This was posted in Bdaily's Members' News section by Ruth Mitchell .