Fraport Scores Double Win in Brazilian Airports Privatization

Frankfurt (ots) - Concessions for Fortaleza and Porto Alegre
airports will run for 25 to 30 years

During Brazil's third round of airport privatizations decided at a
public auction in Sao Paulo today, Fraport AG scored a double win by
placing the top bids of 1,505.75 million Reais (about EUR446.81
million) for Fortaleza Airport and 382.01 million Reais (about
EUR113.36 million) for Porto Alegre Airport. As a result, Fraport
emerged victorious against strong international competition vying for
the two Brazilian airports currently operated by Brazil's state-owned
Infraero. Along with the concession price, Fraport will pay a fixed
fee amounting to five-percent of the airport's annual revenue. The
concession will run for 30 years at Fortaleza and for 25 years at
Porto Alegre. Currently holding a 100 percent stake, Fraport will be
the sole owner and participant of these concessions. Thus, the
concessions and future results will be fully consolidated at the
Fraport Group level.

Following the takeover of the concessions, Fraport AG expects an
additional accumulated EBITDA at the Group level resulting from the
two airports of around 350 million euros during the first five years
and an accumulated negative contribution to the Group result ranging
from the mid to high double-digit million euros. Due to the takeover
of the concessions and the mandatory capital expenditure, Fraport AG
expects an increase in Group net debt by up to around 700 million
euros in the first five years.

Elated by the auction results, Fraport AG executive board chairman
Dr. Stefan Schulte said: "We are excited to start working at
Fortaleza and Porto Alegre airports soon. Using our extensive
expertise, we are committed to further developing both airports
markedly for the benefit of the Brazil. For our airline and passenger
customers, we will quickly implement improved processes and services
as well as attractive Food & Beverage offerings."

Fortaleza's Pinto Martins International Airport (FOR) is
strategically located in the federal state of Ceará in the
northeastern-most part of Brazil, which juts deep into the Atlantic
Ocean. With over four million inhabitants, the Fortaleza metropolitan
region ranks sixth in the country. FOR received 5.7 million
passengers in 2016, making it the country's twelve busiest airport.
From 2005 to 2016, Fortaleza Airport registered 6.8 percent compound
annual growth (CARG). The 5.3 square-kilometer airport site comprises
one runway and one passenger terminal.

Porto Alegre's Salgado Filho International Airport (POA) serves as
the gateway to Brazil's southern-most federal state of Rio Grande do
Sul, which has a population of over 10 million people. POA welcomed
7.6 million passengers in 2016, making it Brazil's 9th largest
airport by passenger traffic. From 2005 to 2016, the airport's
compound annual growth averaged 7.3 percent. Comprising a total of
3.8 square kilometers, the airport has one runway and two passenger
terminals: Via the Aeromóvel people-mover, air travelers can shuttle
to the nearby Alegre Metro Airport Station for trains to downtown
Porto Alegre and other cities of the 4.3 million urban region -
Brazil's fifth most populated and its richest metropolis.

For further information about Fraport AG please click here:
http://ots.de/aboutFraport

Contact:
Fraport AG Robert A. Payne
Telephone: +49 69 690-78547
International Spokesman
E-mail: r.payne@fraport.de
Press Office, Corp. Communications
Internet: www.fraport.com
60547 Frankfurt, Germany
Facebook: www.facebook.com/FrankfurtAirport

Original-Content von: Fraport AG, übermittelt durch news aktuell