Morgan Stanley has a mandate to sell a minority stake in Lima’s Jorge Chávez international airport, Inframation understands.
The sellside advisor was hired to sell a 29.99% stake in the airport held by IFC (19.99%) and the Fund for Investment in Infrastructure, Public Services and Natural Resources (10%), managed by Peruvian investor AC Capitales. The sale likely won’t commence until investments are closed for the proposed second runway expansion.
Once the concessionaire Lima Airport Partners (LAP) closes the financing for the airport’s second runway and related infrastructure at the airport then it will be easier to set a value for the minority sale, one investment banker said.
It is unclear what majority share holder Fraport AG (70%) might do at this juncture. It might keep its equity stake intact or, sell down its position to 55% or so, said two sources briefed on the situation.
Morgan Stanley and AC Capitales declined comment on the situation. German-based Fraport did not return calls seeking comment.
Lima Airport Partners won a 30-year contract in 2001 to develop, manage and operate the Jorge Chávez airport. At the time, the concessionaire was owned by Fraport (42.75%), Bechtel and Cosapi, but in August 2017 Fraport purchased its partners’ 57.52% holding to become the sole owner.
In May 2008, International Finance Corporation (IFC) and AC Capitales acquired a 30% stake in Lima Airport Partners (LAP) from Fraport for USD 40m.
The ongoing expansion project involves adding a second runway at the international airport in Callao, a district of Lima.
Inframation reported in November 2017 that LAP had appointed SMBC as financial advisor for the expansion project and in September 2018 reported that LAP selected an AECOM/FCC/Salini Impregilo team as EPC contractors on the project.
A lawyer at a Lima-based firm said that the sponsors are looking for a seven-year mini perm financing with four or five banks for the approx. USD 1.5bn project.
The Jorge Chávez International Airport saw 20.6m passengers in 2017, according to Fraport’s annual report for the year ending 31 December 2017. This was up from 18.8m passengers in 2016, according to that year’s annual report. In July 2017, LAP successfully concluded an agreement with the government to extend the length of the concession by ten years to 2041 with an additional ten-year extension period.