Five groups interested in Viracopos

24 May 2019 - 12:00 am UTC

Five groups, including Zurich Airport, are interested in the Viracopos concession, a spokesperson for Aeroportos Brasil Viracopos (ABV) told Inframation.

Brazil’s CCR and Spain’s Aena are among the groups interested in bidding, said two sources familiar with the situation.

Aena won Brazil’s northeastern airport lot with a bid of BRL 1.9 bn, representing a 1,010% premium.

“Aena recently won the (northeastern airport lot) in Brazil. We remain alert to all possibilities,” said spokeswoman Esther Pérez Hernández.

Brazil’s CCR Group, which jointly manages the BH Airport in Belo Horizonte, Brazil, with Zurich Airport, said it is “always attentive” to opportunities in both the primary and secondary markets, both inside and outside Brazil.

A spokeswoman for Zurich said on 24 May the company’s latest proposal for Viracopos include a capital injection of up to USD 100m in concessionaire Aeroportos Brasil Viracopos (ABV) plus a BRL 50-100m immediate investment to complete a passenger terminal.

She said negotiations are still on-going, and cover talks over a reduced concession fee, the terms of which not disclosed.

On 9 May a Campinas-based judged allowed ABV to reschedule a creditors general meeting from 16 May to 27 June to allow “interested investors” more time.

The request was filed by ABV and accepted by ABV’s legal administrator Deloitte Touche Tohmatsu Consultoria Contábil e Tributária S/C Ltda and creditor Brazil’s development bank BNDES.

The court decision said the additional time will help ABV to renegotiate debt with creditors and allow investors to conclude analysis, so they can make actual binding offers for the asset.

Zurich’s proposal thus far is a non-binding one.

Brazil’s Secretary of Energy and Airports Coordination at the Investment Partnerships Program (PPI) Pedro Bruno Barros de Souza had told Inframation in February the government has not included Viracopos on PPI’s portfolio, despite a request earlier this year for feasibility studies for replacing Viracopos bankrupt concessionaire with a new counter-party.

Souza and ABV said at the time the feasibility studies will only proceed if a market solution is not reached. Souza was in touch with “several” players, including domestic and foreign investors.

“If a market solution is not reached, then the government is ready to include Viracopos in the PPI,” he said.

Souza said there is no way the existing Viracopos contract can be reviewed. “If there is a market solution, compliance to current contract terms is needed,” he said.

Even if Viracopos is retendered in the case a deal is not reached, it would not take place this year. 

“A tender would then be feasible by in 2020,” Souza said.

 

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