The Ontario Teachers’ Pension Plan is in talks to exit its stake in five airports across Europe. Several potential buyers could be eyeing the £3.5 billion ($4.4 billion) portfolio amid a strong travel sector rebound.
Stakes in five airports are up for sale. Three are in Britain—London City, Birmingham and Bristol—with the others in Brussels and Copenhagen, according to The Sunday Times, which first reported the impending sale.
The airports are valued at more than £10 billion , with OTPP having a combined share portfolio valued at around £3.5 billion.
Minority shareholders have a 30-day right of first refusal to decide if they want to buy out OTPP’s stake. The pension fund is also reportedly in touch with outside investors including Australian infrastructure investor Macquarie.
The soaring demand in travel has attracted new investors to Britain’s airports recently.
London’s Heathrow Airport, which had a record 30.7 million passengers between June and September, was part of a multi-billion deal at the start of the summer.
In June, Ardian and Saudi Arabia’s Public Investment Fund agreed to buy a 25% stake in Heathrow Airport from airport operator Ferrovial for £3.3 billion.
In the same month, New York-based Global Infrastructure Partners sold a 50.1% stake in Edinburgh Airport to Vinci Airports for £1.58 billion.
Here is a list of minority shareholders in OTPP’s portfolio who could seek to take over OTPP’s share , according to PitchBook data.
1. OMERS Infrastructure Management, Alberta Investment Management, Wren House Infrastructure
OTPP first bought into London City Airport in 2016 through a £2 billion leveraged buyout as part of a consortium with OMERS Infrastructure Management, Alberta Investment Management and Wren House Infrastructure.
The group made a £130 million follow-on investment in April to alleviate debt and support ongoing operational costs. The other three parties all remained minority shareholders and would have the right to acquire OTPP’s stake.
2. Sunsuper Superannuation Fund
OTPP first invested in Birmingham Airport in 2001 as a secondary buyer, acquiring the stake from Bridgepoint Group. It made two follow-on investments in 2007 and 2014.
It started disposing of stakes in the asset in 2018 when it sold 14.4% to New South Wales and Australia’s Sunsuper Superannuation Fund. OTPP’s stake in Birmingham Airport dropped to 33.8%.
3. StepStone
OTPP made four follow-on investments in Bristol Airport since its first investment in 2002 and has been exiting the asset since 2017.
It sold a 30% stake to Sunsuper Superannuation Fund and New South Wales in 2017 and another 15% to StepStone in 2018. OTPP is still retaining 55% of stake in the Bristol Airport.
4. APG Group, Government Pension Investment Fund of Japan
OTPP acquired its stake in Brussels Airport from Macquarie in 2008. It has then sold a 39% stake to New South Wales and the Government Pension Investment Fund of Japan, keeping only a 3% stake.
Other minority shareholders in the Brussels Airport include APG Group, QIC, Participatiemaatschappij Vlaanderen, Swiss Life Belgium and the Belgian State.
5. ATP Group, BLS Capital
Copenhagen Airport is listed in the Copenhagen Stock Exchange.
Significant private markets minority shareholders include Danish pension fund ATP Group and hedge fund BLS Capital.
Featured image by Ross Rappaport/Getty Images
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