Durham Tees Valley Airport denies plans to sell its air operations (From The Northern Echo)

Durham Tees Valley Airport denies plans to sell its air operations

12:40pm Tuesday 9th March 2010 in

• Skip social links
• Print
• Email
• Comments(1)

DURHAM Tees Valley Airport owner Peel Group has denied that it is trying to sell its air operations in a bid to expand its port business.

The Northern Echo revealed at the start of last month that talks were ongoing between Vancouver Airport Services and Peel, which operates Durham Tees Valley Airport (DTVA), near Darlington, over a stake in the business.

Peel again refused to confirm or deny that negotiations had taken place last night, although it did reiterate that it was looking for a co-investor for the airport groups.

Now it has emerged that Peel was part of the Northstream consortium that bid £612m for Forth Ports, on Friday.

Forth is the UK’s biggest listed ports operator, with seven British ports,.

These include Tilbury in London, Scotland’s largest container port at Grangemouth, and Leith in Edinburgh.

Speculation increased yesterday that a higher bid of £800m would be put in and that Peel was looking to sell a majority stake in its airports, which could raise £200m, to help fund this.

But last night, Peel said it was standing by an earlier statement which said: “Any speculation that the Peel Airports Group, or any of the Group Airports, has been sold or is for sale is wrong.

“Peel Holdings confirmed several months ago that, at the appropriate time, it would consider the introduction of a co-investor into Peel Airports to provide further capital for the development and expansion of the airports group.

This remains the case.”

As well as Durham Tees Valley, Peel Airports runs Liverpool John Lennon Airport and Robin Hood Doncaster Sheffield Airport.

Vancouver Airport Services operates 18 small to medium-sized airports around the world, serving a combined 30 million passengers annually.

On Friday, Forth decided to reject an improved proposal from the Northstream consortium, which owns 27.4 per cent of Forth’s shares, following an initial approach in January.

Forth said the price fell far short of the value of the business.

The consortium is led by Arcus European Infrastructure Fund, an investment firm formed by the management buyout of part of Babcock and Brown’s European infrastructure business in July, last year.

Arcus holds 23.5per cent of Forth.

Peel holds a 3.5 per cent shareholding, with the rest belonging to RREEF Limited.

Forth has said it will meet with the consortium after its annual results are announced in two weeks’ time.

The group’s portfolio is attractive to would-be buyers because of its steady revenue stream and its growth prospects.