NZ's Infratil cuts bid price for Glasgow Prestwick airport stake

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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.

Infratil 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.

Infratil 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 share.”

This values the stake at £10.2 million.

Infratil says there will be a special meeting held on 24 March, when Infratil shareholders will be asked to vote on the matter.

Earlier 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.

This is around 10% below the comparable figure in 2003 and “materially below expectations,” Infratil said.