Fraport acquires 75% stake in Slovenia’s Ljubljana Airport

8 September 2014 (Last Updated September 8th, 2014 06:32)

German airport operator Fraport has purchased a 75.5% stake in Slovenia's Ljubljana Jože Pučnik Airport, following a bidding process for a total of €177.1m.

German airport operator Fraport has purchased a 75.5% stake in Slovenia's Ljubljana Jože Pucnik Airport, following a bidding process for a total of €177.1m.

As a part of the privatisation process, the operator will soon acquire 100% of the airport for an estimated amount of €234m. The acquisition will be financed from current liquid funds.

To completely acquire the company, Fraport will submit a takeover bid to the remaining shareholders according to the legal and statutory requirements.

Following the takeover announcement, Ljubljana Airport's shares rose by 5.3% to €60, while Fraport's shares increased by 2%.

"The choice for Fraport underscores our position as a leading global airport manager."

Speaking about the expansion of the company's international airport portfolio, Fraport CEO Stefan Schulte said: "With Ljubljana, we are adding another airport investment with dynamic development potential.

"The choice for Fraport underscores our position as a leading global airport manager."

The company further plans to expand passenger and cargo transport at Ljubljana Airport, along with increasing profit and the number of employees.

"We are here as long-term investors," Schulte added.

"We are looking for a long-term development of Ljubljana Airport. The profitability of the airport is good and has no dilutive effect."

Fraport's chief financial officer Matthias Zieschang said: "Our extensive know-how gained over many decades will enable us to further expand and strengthen Ljubljana's competitive position."

French construction company Vinci requested a new round of negotiations, which was turned down by the Slovenian Sovereign Holding that manages the airport's privatisation process.

Ljubljana Airport handled approximately 1.3 million passengers in 2013, earning a net profit of €5.2m and recording revenue of €31m.