Brazil’s government has raised R$20.84 billion (€6.74bn, $9.1bn) by selling majority stakes in two of its airports through an auction on Bovespa, the São Paulo Stock Exchange, Brazil’s Civil Aviation Authority said in a statement.
Aeroportos do Futuro, a consortium led by OdebrechtTransport (OTP) and Singapore’s Changi Airports International (CAI) will pay R$19.02 billion for a 25-year concession to expand, maintain and operate the Antonio Carlos Jobim International Airport, also known as Galeão airport, in Rio de Janeiro.
“A Special Purpose Vehicle to manage Galeão Airport will be composed of 51 percent participation, by OTP and CAI, with 49 percent participation by Infraero, Brazil’s state-run airport management company,” CAI, a wholly-owned subsidiary of Singapore’s airport operator, Changi Airport Group, said in a statement on Friday.
Another consortium, Aero Brasil, led by Brazilian highway operator Companhia de Concessões Rodoviárias (CCR) with a 75 percent share, and Flughafen Zürich, owner and operator of Zurich Airport, bid R$1.82 billion for a 30-year contract to develop and maintain the International Airport of Confins in Belo Horizonte.
As in the case of Galeão airport, the consortium will hold a 51 percent stake in Confins, while Infraero will control the remaining 49 percent.
“We have seen a great demonstration of confidence in Brazil’s future,” said Moreira Franco, head of the Civil Aviation Authority. The bids received were 294 percent and 66 percent higher for Galeão and Confins airports, respectively, than the ceiling price originally stipulated.
“We saw the need to bring in major operators with experience and with the provision of good-quality services many things will change in airport infrastructure,” he said.
The signing of both concession agreements is expected in March 2014.