New Zealand-based infrastructure and
utilities investment group Infratil is
proceeding with a full takeover of Glasgow Prestwick International
Airport in Scotland but for a lower price than earlier agreed.
holds a 77.3% stake in the airport and late last year entered into a
conditional purchase agreement to take full ownership of Prestwick by buying
Utilico Investment Trust’s five million shares in the airport holding company, Glasgow Prestwick Holdings.
had agreed to pay £2.34
($4.30) per share, valuing Utilico’s stake at
£11.7 million, but
today issued a statement saying it has “subsequently undertaken a review of the
trading results for Prestwick and the implications for the proposed purchase. Infratil
advises that it has agreed with Utilico a revised purchase price of £2.06 per
This values the stake at £10.2
Infratil says there will be a special
meeting held on 24 March, when Infratil shareholders will be asked to vote on
this week Infratil announced it was re-evaluating its bid because the airport’s
profits were lower than expected. It said the forecast for Glasgow Prestwick
Holdings’ earnings before interest, taxes and depreciation (EBITDA) has been
revised down to around £4.5 million for the year ending 31 March 2004.
is around 10% below the comparable figure in 2003 and “materially below
expectations,” Infratil said.