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Scottish Government to pursue taking over Glasgow Prestwick Airport

9 Oct 2013

The Scottish Government has notified Infratil of its intention to pursue an acquisition of Glasgow Prestwick Airport, subject to confirmatory due diligence and detailed negotiations with Infratil, by 20 November 2013 (or a later date mutually agreed). To provide comfort to the Scottish Government during this process, Infratil has confirmed that it will endeavour to procure the continued operation of Glasgow Prestwick Airport in the ordinary course of business consistent with the manner in which it has been operated in the last 12 months until, at least, that date.

Copies of the letters exchanged between the Scottish Government and Infratil to this effect are attached.

The divestment process for Manston Kent Airport is on-going, and Infratil remains committed to exiting this investment in the near term. Recognising the importance of the airports to their local communities, Infratil’s preference has been to secure a new owner with the capacity to support their future success. Infratil believes that a Scottish Government acquisition of Glasgow Prestwick Airport achieves that objective and will work proactively with the Scottish Government over the next six weeks towards achieving completion of a transaction.

Background

In March 2012 Infratil announced its intention to sell its two UK airports, Glasgow Prestwick Airport and Manston Kent Airport. On 15 May 2013, Infratil announced that it had written down the value of both airports to GBP11 million. Infratil does not now expect any transaction completed for Glasgow Prestwick Airport or Manston Kent Airport to give rise to material proceeds.

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