Intermoney | The Spanish company (Hold, PO29) is considering selling its 50% stake in AGS, the holding company for Glasgow, Aberdeen and Southampton airports. The remaining 50% is held by Macquarie, according to Expansión.
AGS is currently in the process of refinancing its debt, some £930 million, after which the Spanish construction company would carry out the sale. Expansión’s sources indicate a valuation for AGS of less than £1,000 million for 100% of the capital. This asset is consolidated by the equity method in Ferrovial’s accounts, where its book value is zero. These airports were part, like Heathrow and until 2009 Gatwick, of BAA, acquired by Ferrovial together with other investors in 2006.
Valuation: It would not be surprising if Ferrovial divested AGS, as with the recent exit of Heathrow its presence in UK airports has already been greatly reduced, with the US currently being the fastest growing market, with the €1.1bn+ investment in NTO in New York.
Our valuation of the AGS stake is €550m, which is very much in line with Expansión’s sources.
On the back of the Heathrow sale we raise our Ferrovial PO to €29 from €26, while increasing our EBITDA guidance by an average of +8% in 2023-25e due to the recovery of construction margins. We expect EBITDA to grow by +33% to €971m for the full year.
