French firm sells HK$2b stake in Beijing Airport after stock surge
Aeroports de Paris Management, a strategic shareholder of Beijing Capital International Airport, has offloaded its entire stake in the mainland outfit by selling HK$2 billion worth of existing H shares through a placement yesterday, sources close to the deal said.
The French airport operator, which oversees Paris' Charles de Gaulle and Orly airports, is taking advantage of the company's surging stock price.
The company was selling 253.6 million old Beijing Airport H shares at between HK$7.77 and HK$7.90 each, representing as much as a 6.4 per cent discount to yesterday's closing price of HK$8.30, according to a sale document distributed to fund managers. The offering, which is being helped by Morgan Stanley, translates into 16 per cent of Beijing Airport's existing H shares.
Beijing Airport's shares have almost doubled in the past year.
While the stock shed 3.8 per cent to yesterday's HK$8.30 close, it has risen 36 per cent this year.
'The share sale could put Beijing Airport shares under pressure in the short term. However, it will definitely benefit from the upcoming 2008 Beijing Olympics,' said a fund manager based in Hong Kong.
Aeroports de Paris could reap a profit of as much as HK$1.05 billion from the sale.
The French company bought 384 million Beijing Airport H shares during the mainland firm's initial public offering in 2000, representing 28.5 per cent of the outstanding H-share capital.
The latest selling price was almost double the price it paid for the stake seven years ago.
According to the prospectus of Beijing Airport - which oversees the capital's airfield - Aeroports de Paris agreed not to sell its stake within five years of the initial public offering.
The French company also signed a five-year co-consultancy agreement with the Beijing company, giving it a foothold in airport management on the mainland.
In an attempt to benefit from the robust traffic growth, Beijing Airport raised HK$1 billion through an offering of new shares in Hong Kong, diluting Aeroports de Paris' stake, and plans to raise up to four billion yuan in an A-share offering in Shanghai. Beijing Capital needs to fund terminal construction to meet growing passenger demand.
'[Beijing Airport] has planned to sell shares in the domestic market in late April or early May but the share sale is likely to go faster given the bullish momentum,' said an investment banker close to the company.
