Luton Airport owners are preparing for a £7bn float which would be Europe’s biggest this year. Spanish state-backed airports operator, Aena Aeropuertos, has appointed five banks to oversee a landmark privatization that is scheduled for the autumn. The pitch has attracted senior deal makers across Europe who are set to play a role in this high profile deal. Advisers were given 15 minutes to convince the Spanish government officials they were the right ones for the job.
Bank of America, Merrill Lynch, Morgan Stanley, Goldman Sachs, Santander and BBVA were chosen for the deal in which the Spanish government is to sell under half of the company to new investors. Aena controls 51 hubs, most of which are spread across Iberian Peninsula including major airports in Spain such as Barajas in Madrid and El Prat in Barcelona. Around 187 million people had passed through its airport during the last year.
The company also owns airports in central and southern America. The Spanish government is planning to sell its stake in two parts, 21pc of the company will be sold to anchor investors such as sovereign wealth funds and pension funds, and a further 28pc will be sold through an initial public offering which is expected to take place on the Madrid stock exchange.
At stock market evaluation estimated at £7bn, Aena will dwarf anything that comes to the market in UK in this year’s float frenzy. B&M Bargains worth £2.7bn has been the largest listing in London.
Aena relies heavily on income from a few airports such as Barajas. Of all its 46 Spanish airports, only 13 were profitable in the year 2013 including Barcelonan, Madrid, and Tenerife.
The government says the aim of the sale is to make management of the company more efficient and also attract more tourist flights toSpain which is a major tourist attraction in the world.