GIC exits Beijing airport to NWS Holdings

The purchase of 383 million H shares at HK$6.15 apiece will give NWS a 20.38% stake in the state-owned airport operator making it the second largest shareholder, according to a regulatory filing. BCIA is a joint stock company incorporated in China which has been listed in Hong Kong since 2000.

GIC bought a 0.45% stake into BCIA and then subscribed 250 million shares for HK$1.86 billion in 2008, becoming the second-largest shareholder. BCIA issued 313 million H shares at HK$7.45 apiece, raising approximately HK$2.33 billion through a private placement in May 2008.

As the end of June, GIC owned 413.9 million H shares in BCIA, representing 9.56% shareholding to the total issued shares.

"Beijing Capital International Airport is a quality infrastructure asset with substantial stature and a key correlation to the continuous growth of China's economy," NWS said in the filing. With the rising level of disposable income in china, NWS sees there will be potential growth in the non-aeronautical revenues generated from retail concessions, advertising and rentals.

BCIA operates three terminals and three runways. It is the world's second busiest airport in terms of passengers, exceeding 80 million per annum. Its total revenue amounted to RMB6.8 billion ($112 million) last year, with aeronautical revenues - including passenger charges, aircraft movement fees and airport fees - and non-aeronautical revenue accounting for 58% and 42% respectively.

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• Topics
• Greater China
• Exits
• Infrastructure
• Hong Kong (China)
• Exit
• GIC Private
• Transportation
• China