By Lucy Craymer
WELLINGTON, New Zealand--New Zealand infrastructure investment
firm Infratil (IFT.NZ) has conditionally sold Manston Airport in
Kent for one British Pound to Ann Gloag's Lothian Shelf (710)
Ltd.
The companies said in a joint statement Tuesday that it had sold
the airport for the token amount plus an adjustment for working
capital variances and cash injected by Infratil between Oct. 14 and
when the transaction is completed. The sale is expected to occur on
or before Nov. 29.
"From Infratil's perspective, while Manston was a very small
part of the company's overall asset base, this sale will result in
a more focused portfolio and improve our future cash flow
position," said Infratil chief executive Marko Bogoievski.
Infratil has been looking for a buyer for this airport, along
with a second--Glasgow Prestwick Airport in Scotland--since March
2012, as the airports have failed to deliver the expected passenger
growth and financial returns. Infratil has had to continually write
down the value of its European airport assets. Earlier this month
the company said the Scottish government was looking to buy Glasgow
Preswick, with the hopes negotiations would be completed by
November.
Infratil said following the sale of Manston Airport and the
proposed sale of Glasgow Prestwick Airport the company expected to
impair the assets by approximately GBP11 million in its half year
financial results. This was the total value of the two assets as of
May.
Write to Lucy Craymer at lucy.craymer@wsj.com
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