Manston sold for one pound

Infratil, the Wellington-based infrastructure investor, has agreed to sell Manston Airport in the UK for 350,000 British pounds to Stagecoach Group co-founder Ann Gloag and her brother Brian Souter.

Ann Gloag

Infratil agreed to sell the airport for 1 pound plus adjustment for working capital variances and cash injected by Infratil, the company said in a statement.

The latest sale comes after Infratil last week said it was in talks to sell its Glasgow Prestwick Airport to the Scottish government, allowing the infrastructure investor to exit the unprofitable overseas airports it earmarked for sale in March last year. Infratil expects to write down the value of the assets in its books by about 11 million pounds to zero in its earnings for the six months to September 30, the company said today.

Infratil chief executive Marko Bogoievski said in the statement:

"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,"

The announcement comes a day after news that David Newman, a director of Infratil for almost two decades and chairman for the past nine years, had died in Wellington.

Shares in Infratil last traded at $2.535, having gained 12 per cent this year. The stock is rated a 'buy' according to the consensus of analysts polled by Reuters.

NZ Herald 14th Oct 2013

---

---

Infratil Limited has agreed to sell Manston Airport to Lothian Shelf (710) Limited, an entity wholly owned by Ann Gloag, for cash consideration of £1 plus an adjustment for working capital variances and cash injected by Infratil between 14 October 2013 and transaction completion (which is expected to be around GBP350,000).

Ann Gloag is an experienced investor who co-founded Stagecoach Group, the UK-listed public transport operator, along with her brother, Brian Souter.

Marko Bogoievski, Chief Executive of Infratil said:

"Infratil Limited is very pleased to have found an acquiror with a vision for Manston Airport's future development. 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"

Ann Gloag said: 

"I am delighted to have purchased Manston Airport from Infratil as I believe there is real potential for growth that has not been fully captured. Having worked in the transport industry for over 30 years, I believe I am very well placed to help maximise opportunities for both freight and passengers at Manston."

Following the sale of this asset and the proposed sale of Glasgow Prestwick Airport to the Scottish Government announced last week, Infratil expects to impair these assets by approximately GBP11 million in its half year financial statements to 30 September 2013.

Completion and settlement of the Manston Airport sale will occur on 29 November 2013 (or earlier, at the purchaser's request), and is only conditional on matters within Infratil's control.

Kevin Baker
Chief Financial Officer

4-traders.com  14th Oct 2013