Vinci to buy majority of Edinburgh Airport in UK expansion

London: VINCI agreed to buy a majority stake in Edinburgh Airport for £1.27 billion (S$2.15 billion), furthering an expansion in the UK by the French construction and concessions firm.

Global Infrastructure Partners (GIP), which has owned the Scottish hub since 2012, will continue to manage just under 50 per cent, according to a statement on Wednesday (Apr 17). Vinci has purchased majority stakes in London Gatwick and Belfast International since 2018, making the UK its second-largest aviation market.

Airport assets in the UK are starting to regain their appeal after business recovered from the impact of the pandemic. Saudi Arabia’s Public Investment Fund said in November it planned to buy a stake in London Heathrow, the Europe’s busiest travel hub. That deal is pending as other potential buyers consider joining in with PIF and French buyout firm Ardian.

GIP had sought more than £3 billion for the entire Edinburgh business, Bloomberg reported last month. Spain’s Aena was also vying for the airport alongside the French builder.

Edinburgh Airport had revenues of £272 million and an Ebitda margin of 65 per cent last year, Vinci said. The company, which operates France’s biggest highway network, is also taking a 20 per cent stake in Budapest Airport, with the Hungarian government initially buying 80 per cent.

In all, Vinci operates 70 airports globally, according to its website. Its European facilities include France and Portugal, with significant operations in Latin America.