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Singapore Swoops In £1bn UK Airports Deal

 

A Singaporean wealth fund is in talks to buy a stake in three of the UK's biggest regional airports, Sky News understands.

 

 

http://news.sky.com/story/1346659/singapore-swoops-in-1bn-uk-airports-deal

 

 

A state-backed Singaporean investment fund is poised to participate in a £1bn takeover of the UK's biggest regional airports that will be announced within days.

Sky News has learnt that the Government Investment Corporation of Singapore (GIC) is expected to take a slice of the equity in Aberdeen, Glasgow and Southampton airports, alongside Ferrovial, the Spanish infrastructure giant, and Macquarie, the Australian bank.

 

GIC's involvement is understood to be in the process of being finalised although it may not be publicly named as an investor when the deal is announced early next week, according to insiders.

 

 

The three airports, which collectively handle approximately 13 million passengers annually, are being sold by Heathrow Airport Holdings (HAH), the parent company of Britain's busiest airport.

 

Sky News revealed Ferrovial's interest in buying the three airports nearly ten months ago, with HAH's board keen to offload the regional sites as it concentrates on securing backing for a third runway.

 

The debate about Britain's aviation policy will reach a crucial stage next year, when Sir Howard Davies's commission makes a recommendation about the most appropriate location for new runway capacity.

 

 

The Commission's verdict will be made after the general election, and is effectively now a two-way fight between Heathrow and Gatwick, with the London Mayor, Boris Johnson, having seen his concept of a new hub airport in the Thames Estuary rejected by Sir Howard.

 

 

The three regional airports owned by HAH are the last remnants of the former BAA's monopoly over the UK's aviation infrastructure.

 

Next week's deal has been held up because of the complexity of HAH's own shareholder structure, with Ferrovial, which took over BAA in 2006, having steadily reduced its investment in Heathrow in recent years by selling small chunks of shares to sovereign wealth funds in China, Qatar and Singapore, including GIC.

 

Last year, the Universities Superannuation Scheme, one of the UK's biggest pension fund managers, bought an 8.65% stake in Heathrow's holding company, a move which saw Ferrovial's shareholding lowered to 25%.

 

Shortly after Ferrovial's takeover of BAA, competition authorities ordered the company to break itself up by selling Stansted, Gatwick and either Glasgow or Edinburgh, the latter of which was offloaded two years ago.

 

Heathrow accounts for more than 95% of HAH's annual profits, making the sale of the other regional assets "inevitable" within the next three years, said one.

 

HAH declined to comment on Friday.

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Hypersonic

So... CPF member will soon get discount on the airport fee when using Heathrow airport.... :D

 

Read the article again. Heathrow, the profitable one, is not in the deal

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So... CPF member will soon get discount on the airport fee when using Heathrow airport.... :D

wait long long.......giv 2.4% interest on our cpf interest already they say good liao!
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Read the article again. Heathrow, the profitable one, is not in the deal

 

 

So... CPF member will soon get discount on the airport fee when using Heathrow airport.... :D

 

Read the article,,,,, it says the passenger volume is only 13 million annually for the 3 airports combined.

 

Phew, quite small frys leh , , , ,

 

Changi airport handles about 45mil a year..

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Read the article again. Heathrow, the profitable one, is not in the deal

 

Manchester ..... yea..... got discount or not when in that airport to watch either ManU or ManCity matches ... :huh:

 

[laugh][laugh]

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Hypersonic

 

Manchester ..... yea..... got discount or not when in that airport to watch either ManU or ManCity matches ... :huh:

 

[laugh][laugh]

 

Sinkies are easy carrot. Maybe will cost us double to watch [sweatdrop]

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How about Changi airport. What will be the price tag if put up for sale.

 

Would there be hot interest? Maybe some oil rich nation.

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wait long long.......giv 2.4% interest on our cpf interest already they say good liao!

Yalor :)

偷笑了 :D

 

The extra earnings would just go into their coffers and their bonus lah, nothing for us

How about Changi airport. What will be the price tag if put up for sale.

 

Would there be hot interest? Maybe some oil rich nation.

National heritage icon, so don't think garmen will ever put up for sale.

Moreover, it's money income too :)

And of course, security lah

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Soon we buy BPL

How about Changi airport. What will be the price tag if put up for sale.

 

Would there be hot interest? Maybe some oil rich nation.

I reckon at least 30-40 billion

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Soon we buy BPL

 

I reckon at least 30-40 billion

 

ok, put high price, nobody will want.

 

the deal is a 3 sided joint venture - maybe SG share will not be the biggest.

 

GIC asked not to named when the announcement is made - why?

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ok, put high price, nobody will want.

 

the deal is a 3 sided joint venture - maybe SG share will not be the biggest.

 

GIC asked not to named when the announcement is made - why?

hahaha....the day a SG GLC buys an EPL team that will the day they will jack up the price for watching EPL matches by four fold! I rather they dont......
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hahaha....the day a SG GLC buys an EPL team that will the day they will jack up the price for watching EPL matches by four fold! I rather they dont......

But we will see Fandi ahmad coaching. Man U

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But we will see Fandi ahmad coaching. Man U

hahaha...u joking right? MU season oredy lose win lose lose win....if Fandi the w will be replaced by L.......sorry har Fandi.....u are a good player...but coaching is not your forte!
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I think what GIC wants to do is to develope the three airports to competitive levels and make money out of it. SGP got the experience and expertise.

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hahaha...u joking right? MU season oredy lose win lose lose win....if Fandi the w will be replaced by L.......sorry har Fandi.....u are a good player...but coaching is not your forte!

Hahaha buying epl will make singapore football go internsiaonal haha

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I think what GIC wants to do is to develope the three airports to competitive levels and make money out of it. SGP got the experience and expertise.

 

Sometimes I worry about our "experience" and "expertise". It works only with a docile labour climate, with enforced "good" industrial relations.

 

The rough-and-tumble environment of the UK, with free press, active labour unions, rights groups, etc. are often something that we have zero "experience" and "expertise"... It's a totally different business environment that will lose money if we're not careful.

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Sometimes I worry about our "experience" and "expertise". It works only with a docile labour climate, with enforced "good" industrial relations.

 

The rough-and-tumble environment of the UK, with free press, active labour unions, rights groups, etc. are often something that we have zero "experience" and "expertise"... It's a totally different business environment that will lose money if we're not careful.

Erm....there's no such thing as a sure win investment anyways. It's either you sit there do nothing or you give it a shot.

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