Hochtief no to sell stake in Budapest Airport

City

German construction group Hochtief has decided not to sell its stakes in airport operator companies including Budapest Airport Zrt for the moment.

German press reports on Monday said the company had changed its earlier plans due to the challenging economic situation.

Hochtief holds a 49.66% stake in Budapest Airport, and also has holdings in companies operating airports in Athens, Dusseldorf, Hamburg, Sydney and Tirana.

The company reorganised its airport assets into a unit called Hochtief Concessions earlier and planned to sell the unit in 2011. China’s Hainan Airlines and France’s construction group Vinci got into the final round of the tender.

The seller was hoping to raise €1.5bn from the transaction, but financing such deals has been made difficult by the euro zone sovereign debt crisis to such an extent that the company could only have been sold well under the targeted price.

The plan has therefore been shelved for the meantime even though this means that Hochtief will post losses of €100m in the 2011 business year instead of the planned profits, the press reports said.

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