M.A.G has a detailed integration plan in place to ensure a seamless transition of ownership and operations at Stansted which will maintain business as usual for passengers and customers.
Charlie Cornish, Chief Executive of M.A.G, said:
"We're delighted to have added Stansted to our strong portfolio of UK airports. We aim to help fulfil its potential in the London market and bring more choice to its passengers in the years ahead. Today represents the achievement of a major strategic ambition for M.A.G and we look forward to working alongside staff, partners and stakeholders in ensuring the Group's success."
Christian Seymour, Head of Infrastructure, Europe, at IFM commented:
"We are hugely pleased to complete the acquisition of our stake in M.A.G and Stansted. It is a landmark acquisition for IFM, deepening our footprint in the UK, and is the culmination of 18 months' work developing a strong, long term partnership with M.A.G. We look forward to bringing our significant international expertise in the airport sector to the benefit of the group."
The funds for the acquisition came from new equity raised from IFM, together with investment grade financing. All the existing shareholders' equity has been maintained in the Group.
Sir Richard Leese, Leader of Manchester City Council, a M.A.G shareholder, said:
"M.A.G is a key driver of jobs and growth in the North of England and the acquisition of Stansted will help us deliver maximum value for Manchester City Council and the other local authority shareholders. A larger, stronger M.A.G will benefit the whole region and we welcome confirmation that the acquisition has been completed."
Notes to editors:
- J.P. Morgan Cazenove acted as financial adviser and RBS as debt adviser to M.A.G.
- Gleacher Shacklock LLP acted as financial adviser to IFM.
- Financing was provided by a syndicate of thirteen institutions. The participating financial institutions were Bank of America Merrill Lynch, Barclays Bank PLC, BNP Paribas, Canadian Imperial Bank of Commerce, Commonwealth Bank of Australia, HSBC Bank plc, Lloyds TSB Bank plc, National Australia Bank, Prudential Capital, RBC Capital Markets, The Bank of Tokyo Mitsubishi UFJ, LTD., The Co-Operative Bank plc and The Royal Bank of Scotland plc.
M.A.G now serves nearly 42 million passengers through its ownership and operation of Manchester, Stansted, East Midlands and Bournemouth airports. Its property and facilities management arm, M.A.G Developments, is responsible for the Group’s estate and also the development of Manchester’s Airport City.
M.A.G's overall strategic intent is to increase long term shareholder value by generating profitable growth, developing its assets and deploying efficient and customer focused operating processes throughout the business.
More than just a regional success story, the Group’s airports and property business already contribute more than £3bn to the UK economy and support thousands of jobs.
IFM is a global investment manager with investors and offices in three of the largest pension markets in the world. Headquartered in Melbourne, Australia, with offices in Sydney, London and New York, IFM manages over £24 billion across four asset classes – infrastructure, debt investments, private equity, and listed equity portfolios.
IFM invests on behalf of institutional investors and is owned by 30 major not-for-profit Australian superannuation funds. IFM is actively committed to the United Nations Principles for Responsible Investment (UNPRI) and has been a signatory since 2008.
IFM is a highly experienced, long-term investor in airports. It has held investments in airport assets since 1997. Through its Australian Infrastructure Fund, IFM currently has significant interests in nine airports across Australia, including five major capital city airports. In 2011, IFM owned airports facilitated the flow of over 72 million domestic and international passengers.
As at 30 September 2012, IFM's airport investments exceeded A $1.8 billion in equity value.