Fraport Agrees To Purchase Ljubljana Airport
Acquiring to Flu High: Fraport Agrees To Purchase Ljubljana Airport
Germany's Fraport AG along with a consortium led by Slovenian Sovereign Holding reached an agreement for buying Aerodrom Ljubljana which is the airport in Slovenia's capital. The German company will acquire 75.5% stake for attaining the purchase price of 177.1 million Euro. Fraport AG will aim to acquire 100% of the airport and submit a bid for takeover for the rest of the shareholders.
Ljubljana Airport has handled around 1.3 million passengers in the year 2013. The airport earned revenues of around 31 million Euro in the past year. It is currently debt free. Fraport AG has now aimed to extend its international reach. The German aviation operator has indicated that the purchase price is USD 229.5 million while the purchase price is 177.1 million Euro.
Fraport AG also shared that it had paid 61.75 Euros per share. This means the entire company is valued at 234 million Euro. The acquisition will be financed through the means of buying up of the entire capital. Slovenia's capital city Ljubljana's airport is a real revenue maker and it is the gateway for Fraport AG in southeastern Europe now.
There was massive competition in the closed bidding process for this airport which was held on July 4, according to a Reuters report. The selection of Fraport via the seller side for participation in exclusive negotiations on sale of Aerodrom Ljubljana was hard fought for.
Fraport will be acquiring 100% od the company as part of a process of privatization. In keeping with this, the German company has submitted a takeover bid for the remaining shareholders of the firm as per the legal and statutory requirements and procedures.
Dr Stefan Schulte,executive board chairman (CEO)of the German company has been quoted as saying “With Ljubljana, we are adding another airport investment with dynamic development potential. The choice for Fraport underscores our position as a leading global airport manager.”
Dr Matthias Zieschang, the executive board member for controlling and finance (CFO) of Fraport AG was quoted as adding “Our extensive know-how gained over many decades will enable us to further expand and strengthen Ljubljana’s competitive position – a real win-win situation for everyone involved.”
Ljubljana Airport has handled large volumes of business in the past year, generating profits of around 5.2 million Euro. The government of Slovenia is selling state-owned companies so that it can prevent bankruptcy and raise sorely needed funds at the same time. The sale will also ensure the construction of a new terminal building which will play a major role in the further development of the project. With this acquisition, Fraport looks to move beyond the usual barriers to international expansion and fly higher. Flying high in the skies through such acquisitions, the sky's the limit for this German firm.
