Spain's State-run Airports Operator Struggles for Buyer

 

Prospective buyers of Spanish airports operator AENA are being put off by empty terminals at Madrid's main airport, hampering the government's efforts to sell the indebted company.

Traffic to Barajas airport has dropped as Spain's economic crisis cut domestic tourism and business travel. Budget carriers have also reduced flights complaining of high fees and Iberia airline, a major client, is fighting for survival.

Investors who stayed away from Spain during Europe's debt crisis have started to return, giving the government a chance to get rid of liabilities such as AENA.

Investment bank Lazard and Spain's N+1 brokerage are helping with a search for investors for a public launch of at least 49% of AENA, which operates 46 Spanish airports and London's Luton, and has stakes in 14 Latin American airports.

But sources close to the process said there is little interest and a slim chance of meeting the government's goal of a deal early next year unless Barajas, which represents 20% of AENA's income, becomes more attractive.

"First they've got to improve the situation in Barajas because any investor wants a stable business with growth," said a source close to an investor that has been approached.

The government is approaching financial investors about the minority stake and has promised discounted fees for airlines that bring more flights to Barajas, which is now only operating at 60% capacity.

Infrastructure companies, which build and often invest in airports are not interested unless they can take a controlling share, sources in the sector said.

The Public Works Ministry, in charge of the sale, declined to comment for this story, as did Lazard and N+1.

Among investors the government has tried to tempt for an initial public offering are Alba, the investment arm of Spain's bank-for-the-wealthy Banca March, a source with knowledge of the situation told Reuters.

Expansion newspaper reported that the government had also approached the Casa Grande de Cartagena investment vehicle of the del Pino family, who in turn own a stake in Heathrow airport owner Ferrovial.

Both investment groups declined to comment.

DEBTS

With a tentative economic recovery under way and big-name investors such as Microsoft co-founder Bill Gates - who this week bought a 6% stake in Spanish builder FCC - interested in the country's assets, banks and government officials are optimistic deals will pick up.

Colombian and U.S. investors recently bought new shares in Spanish lender Banco Sabadell and sources say a Canadian paper group is interested in Spain's Indas.

However, AENA has debts of €13 Bln from rapid expansion during Spain's construction bubble.

"Aena invested €15.6 Bln from 2000 to 2010. In some places it went too far," AENA President Jose Manuel Vargas told reporters recently.