British airports operator TBI, owner of Belfast International Airport, is considering a possible £500 million sterling (€790 million) bid for the group from the French construction firm Vinci.
Vinci, which has bought more than 83 million shares equivalent to a 14.9 per cent stake in TBI, said yesterday it was proposing to make a cash offer of 90p per share for the British group which operates airports from Belfast to Orlando.
Businessman Mr Dermot Desmond holds about 4 per cent of TBI. Vinci wants to enlist the directors' support for its bid, TBI's management has advised shareholders to take no action while it considers the bid terms.
The French group's core business is construction and airport management but it wants to concentrate on expanding its airport management business.
It has investments in 26 airports worldwide and employs more than 7,000 people in Britain through NorWest Holst and Vinci Park, a major car park operator.
TBI has transformed itself from a mainly property-oriented business to a specialist airport operator and now has investments in airports in Europe, the US and Bolivia. It is the largest shareholder in Luton Airport, one of the top four airports in Britain and the main hub for low cost operator EasyJet. The group's core business revolves around airports in the UK, such as Cardiff International, Skavsta in Stockholm and Orlando's Sanford airport.
TBI recently reported a 6 per cent rise in pre-tax profits of £19.3 million for the financial year to March. The group was dealt a major blow earlier this month when Bmi (British Midland) announced plans to transfer all its services to and from Northern Ireland to Belfast International's rival airport, Belfast City.
TBI's latest trading figures for the first three months of this year showed strong growth in passenger figures from its key airports, Belfast International has delivered the lion's share of growth with passenger figures up 15 per cent this year to date.
Of Belfast International's 3.1 million passengers last year nearly 700,000 of these air travellers were British Midland customers and its decision to move to another airport has had a major impact on TBI.
The group's share price nose-dived following the announcement and TBI subsequently warned that Bmi's decision could wipe £6 million off its profits. The airports group has also been involved in protracted discussions with EasyJet over passenger and handling fees at Luton Airport, these discussions have been extended until the end of August. TBI's share price yesterday staged a recovery on the back of market speculation about Vinci's bid.
But industry analysts have sounded concerns about TBI's current state of health following the loss of British Midland and the ongoing uncertainty about its future arrangements with EasyJet.
