Bidders line up for £2bn LCY

Five main bidders for London City Airport (LCY) have emerged after last week’s deadline for interested parties to register. The airport was put up for sale earlier this year by the present owner, Global Infrastructure Partners of the US, and is thought to be worth up to £2bn.

Cheung Kong Infrastructure Holdings (CKI) of Hong Kong, headed by Li Ka-Shing, is understood to be on the list, along with Italian infrastructure group Atlantia.

Three consortia are also said to be in the running, one led by Macquarie Infrastructure and the other two consisting of a group made up of Allianz and Canada's Borealis Infrastructure and another consisting of Wren House, Hermes and the Ontario Teachers' Pension Plan. The next stage in the bidding is in February. 

The airport’s estimated worth of £2bn is based on a formula of 27 times its expected earnings before interest, taxes, depreciation, and amortisation (EBITDA). In 2015, this was £71.5m.

Li Ka-Shing has acquired several UK infrastructure assets over the last decade, mostly in utilities, but has recently moved into transportation.

In January a CKI-led consortium acquired Eversholt Rail Group, one of the three major UK train leasing companies for £2.5bn.  www.londoncityairport.com

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