Frankfurt Airport Services Worldwide has reached an agreement to divest its entire 30% stake in Flughafen Hannover-Langenhagen (FHLG) to iCON Flughafen, in a transaction valued at approximately €109.2m.

FHLG is the operating company of Hanover Airport (HAJ) in northern Germany.

Fraport acquired shares in FHLG in two portions. At the outset, the company purchased 20% stake in 1998, followed by another 10% in 2003.

The remaining 70% of FHLG is owned equally by two co-shareholders, namely the City of Hanover and the Hannoversche Beteiligungsgesellschaft, a wholly-owned company of the State of Lower Saxony.

Fraport executive board chairman Dr Stefan Schulte said:  “For some time, we have received strong interest from the market for Fraport to sell its stake in Hanover Airport.

“Hanover Airport is a solid business with a bright future. It has developed into an important aviation gateway in northern Germany for both passenger and cargo traffic.”

“This underscores Fraport’s competence in increasing the value of our airport investments, wherever we operate around the world.

“We achieve this by enhancing operations, infrastructure, and the customer experience. At the same time, we are pursuing the goal to acquire majority stakes in airports or to hold a position of significant influence in these airport companies.”

Passenger traffic at HAJ increased by 8.5% to 5.9 million last year. For the first six months of this year, the airport recorded a 7.8% increase in passenger traffic to almost 2.8 million passengers.

Schulte added: “Hanover Airport is a solid business with a bright future. It has developed into an important aviation gateway in northern Germany for both passenger and cargo traffic. We would like to thank the other FHLG shareholders and the Hanover region for the excellent cooperation, and we wish them continuing success.”

Completion of the transaction is subject to the contractually agreed pre-emption rights held by the two co-shareholders and is expected to take place during the next two months.