Lyon and Nice airports privatisation to launch mid-October, French Economy Minister says
The privatisation of Nice and Lyon airports will be officially launched in mid-October, France's Minister of the Economy, Emmanuel Macron, told this news service.
The terms of the privatisation are being drawn up by the Agence des Participations de l’Etat (APE). These should be finalised by mid-October at which point advisors will be mandated to handle the process, Macron said.
The state controls 60% of Nice Cote d’Azur Airport alongside Chambre de Commerce et d'Industrie (CCI) Nice Cote d'Azur (25%) and local authorities (15%). Lyon-Saint-Exupéry Airport is 60% held by the state, 25% by Chambre de Commerce et d'Industrie (CCI) Lyon and 15% by local authorities.
According to recent local press reports, the government will sell its entire 60% stake in each of the Lyon and Nice airports, with the respective Chambers of Commerce and local authorities retaining their shareholding. The process is reportedly expected to conclude at the beginning of 2016.
As the municipalities of Lyon and Nice asked for their interests to be taken into account in the upcoming auction, it is understood they will be consulted before the terms of the privatisation are dispatched, a lawyer following the situation said.
Societe Generale advised the Government of France on the sale of Toulouse Blagnac airport at the end of 2014. In the same way as other banks, Societe Generale is waiting for the decision in regards to the advisors, a Societe Generale spokesperson said, declining to comment further.
Airports command multiples of around 15x EBITDA, so with EUR 100m in EBITDA, Nice airport should be valued at around EUR 1.5bn and will likely attract a larger number of investors than Lyon, this news service previously reported. Lyon airport’s EBITDA stands at EUR 50m, valuing the asset at around EUR 750m, and would more likely attract infrastructure funds, as its valuation might be too low for sovereign funds, this news service also reported.
Macron was in London to promote France as a foreign investment destination.
Previously reported potential bidders for Nice airport include listed German insurer Allianz [ETR:ALV], investment fund Ardian, sovereign funds Temasek from Singapore, Canada’s PSP and Caisse de Depot & Placement du Quebec. Earlier this year, it was also reported that Atlantia [BIT:ATL], an Italian infrastructure company, could partner with sovereign wealth funds Abu Dhabi Investment Authority (ADIA) or infrastructure fund Wren House, a subsidiary of the Kuwait Investment Authority, to bid for Nice airport.
Previously reported bidders for Lyon airport include funds Meridiam and Ardian, Canadian group SNC Lavalin [TSE:SNC], French concessions and construction company Vinci [EPA:DG], through its subsidiary Vinci Airports, French state-owned financial services group Caisse des Depots & Consignations, Australian fund AMP Capital, and Swiss state-owned airport operator Geneve Aeroport along with CUBE, the investment fund specialized in infrastructure. Earlier this week, Augustin de Romanet, head of listed Paris airports operator ADP [EPA:ADP], said that his group would not take part in the auction for Lyon airport.
Other firms reportedly interested in the Nice and Lyon airport privatizations include Italian holding company F2i Aeroporti, German airport operator Fraport [FRA:FRA], and private equity firm Global Infrastructure Partners.