RFPI is looking for investors to buy Domodedovo airport, assessing the business at $ 5 billion, told sources RBC. Previous attempts to buy an airport, which claimed at least five companies since 2011, failed
The search for investors potentially interested in buying Domodedovo airport is being conducted, specialists of the Russian Direct Investment Fund (RFPI) are participating in this work, the investment banker, who wished to remain anonymous, told RBC. About the search for investors for Domodedovo RBC know three more sources of RBC in Russian investment banks and confirms a source close to the RFPI consultants.
“At present, we are talking about preliminary negotiations on the collection of initiative proposals. The possibility of participation in the purchase of up to 100% of the company is being discussed, “said one of the interlocutors of RBC. According to him, RFPI operates “under a mandate from the airport owner” and acts as the organizer of a possible transaction.
One of the interlocutors of RBC adds that in informal consultations with investors, which have been going on for about six months, the business assessment of the entire airport is being discussed at $ 5 billion (other sources do not call the assessment). According to him, in February 2018, the Sovereign Fund of Qatar (QIA) was interested in the asset, which owns 18.93% of Rosneft and 25% of Pulkovo. Experts of the Russian Investment Agency were involved in preliminary consultations with Qatar concerning possible investments in Domodedovo, he added.
Investor from Qatar
At the end of March 2018, within the framework of the visit to Moscow by the Emir of Qatar, Tamim bin Hamad Al Thani, Qatar Airways and Vnukovo signed a memorandum of understanding, which involves the sale of 25% of this airport. But the FAS still did not receive any documents from the buyer, the representative of the service told RBC on July 30.
The airport is interested not only in QIA, but also in investors from other Middle Eastern countries, adds another source close to one of the investment consultants working with RFPI.
The process is still at an early stage with an unclear result, RBC said a source close to one of the Russian banks. The initiative to start negotiations on the sale of Domodedovo came from the RFPI about four months ago, but the proposal was not supported by the owners of the airport, another interlocutor of RBC added.
The representative of Domodedovo denied information about the search for investors. “The DME Group (owns 100% of the airport) does not discuss or prepare any deals,” he said. Representatives RFPI and the Russian Investment Agency declined to comment.
Domodedovo is the second largest passenger airport in Moscow after the Sheremetyevo Airport. In 2017, the company serviced 30.7 million people (7.6% more than a year earlier). The route network includes 66 unique destinations. Following the results of 2017, the revenue of DME Limited (the parent company of the airport structures) under IFRS amounted to 40.6 billion (+ 6.4%), net profit – 9.35 billion rubles. (+ 11.7%), EBITDA – 14.06 billion rubles. (-1.8%).
Since 2013, Domodedovo has invested 42.8 billion rubles. in the development of the airport complex. In June 2018, Rosavitsia issued a permit to commission a new segment of the airport’s passenger terminal with a capacity of 5 million people (before that, the capacity was 30 million people). Dmitry Kamenshchik in an interview with Bloomberg in July 2017 said that he was going to invest $ 1.3 billion in Domodedovo, in order to increase the annual passenger traffic to 60 million passengers in the future.
Alexander Gushchin, senior analyst of the corporate ratings group of ACRA, estimates the cost of Domodedovo at $ 1.5-2 billion. “But the airport has significant potential for long-term growth, and the company provides a full range of aviation services, which can provide additional synergy and increase its cost,” – he adds.
Negotiations and denials
Interest in purchasing Domodedovo showed the owners of the airport-competitors and other companies. Every time representatives of Domodedovo and sources close to its shareholders denied negotiations on the sale of the asset, although potential investors confirmed them.
In 2011, the head of Vnukovo’s board of directors Vitaly Vantsev told that he and his partners considered the possibility of acquiring Domodedovo, but the price did not suit him. In 2011, Domodedovo planned to hold an IPO, and after the abolition of these plans, Mason discussed the sale of the asset with the chairman of the board of directors of Sheremetyevo Alexander Ponomarenko. In a conversation with RBC, Ponomarenko confirmed that he was considering this deal “with his partners.”
Another contender for the purchase of a stake in Domodedovo was the former Energy Minister, the owner of the Energy Foundation, Igor Yusufov. In an interview with Vedomosti in late 2011, he told that he was negotiating with the chairman of the board of directors of Domodedovo, Valery Kogan, about buying a 25% stake in the airport for $ 1 billion, but the deal did not take place, because the airport shareholders “reflected” on the IPO .
In May 2012, the Domodedovo press service officially denied all the rumors about the sale in response to reports about interest in the airport of A1 investment company, Mikhail Fridman, member of Alfa Group, Ziyavudin Magomedov’s Sum, Renov Viktor Vekselberg, element “of Oleg Deripaska, as well as Vantsev.
In 2013, Kommersant named among the possible buyers Domodedovo Novaport Roman Trotsenko and Rosneft, in which Trotsenko worked as an adviser to the president. The press service of Domodedovo fact of negotiations on the sale of the airport did not confirm. A source close to the airport owners denied this information.
In June 2016, Trotsenko did not exclude the purchase of the airport, but stressed that he would initiate negotiations not earlier than the situation with the house arrest of Kamenshchik in connection with the criminal case of the terrorist attack at the airport in 2011 (all claims to Kamenshchik were dropped in July, in July 2016).
Later, in September 2016, Mason at a briefing said that he had not received offers to sell the business during the investigation. Then the businessman explained that he had no plans to sell or to attract partners.
The representative A1 on July 31 evening told RBC that the company had not received any offers to buy Domodedovo. Representatives of Renova and Sheremetyevo declined to comment. Trotsenko did not answer the RBC call. RBC sent a request to Vnukovo.
Article sourced from the this at RBC and machine translated for your convenience