A consortium involving Aer Rianta's international division will acquire 36 per cent of Hamburg airport after its bid in a public auction was sanctioned yesterday by senators in the German city-state.
The Irish company will pay about £2-million for 7.2 per cent of the airport, its spokesman said.
A German construction firm, Hochtief, will pay in excess of £215 million for its 28.8 per cent stake, considerably more than previously reported.
Aer Rianta will manage the airport's operations as part of its partnership with Hochtief, which has no expertise in the area. The airport is the fourth-largest in Germany.
Aer Rianta already owns half of Germany's third-largest airport, Dusseldorf, in partnership with Hochtief, which is owned by a publicly-quoted energy group, RWE.
The federal government in Germany will sell its entire 25 per cent share of Hamburg airport as part of the deal and the remaining 11 per cent will be sold by the authorities of the city state.
They have an option to sell a further 13 per cent of the airport by 2007, a spokesman for the city's economics department said.
While the German federal government is also selling part of Frankfurt airport, it is believed that the Irish company's part-ownership of the Dusseldorf operation will preclude it from taking part in this process.
Aer Rianta and Hochtief faced a counter-bid from an Australian investment group, Morrison, which had strong support from business interests in Hamburg.
The outcome of the process - described by one participant as "very competitive" - was not decided until Hamburg senators took a vote yesterday morning.
This is Aer Rianta's third acquisition of a stake in a foreign airport. The state-owned company owns 48.25 per cent of Birmingham airport, in partnership with the British-based bank, NatWest.
While the company had expressed an interest in acquiring 41.33 per cent in Turin airport with Hochtief, that bid has now been withdrawn. It is thought that this smaller airport's proximity to the major hub at Milan airport was a factor in this decision.
Aer Rianta's international division reported an after-tax profit of £7.1 million for 1999 on a turnover of £30.29 million. The company was advised by IBI Corporate Finance in the Hamburg deal.
Meanwhile, the likely outcome of a proposal by the Minister for Public Enterprise, Ms O'Rourke, to float about 30 per cent of Aer Rianta is still unclear.
Ms O'Rourke's spokesman said last evening that she still intended bringing a proposal to Government, although he did not know when this would happen. Certain Cabinet members, including the Minister for Health and Children, Mr Martin, are opposed to the proposal.
